With the 2020-2021 school year starting, the MTRS has been receiving questions from employers about benefits paid under the Families First Coronavirus Response Act (“FFCRA”). We have listed the most common questions and answers below to help provide guidance for employers.
Q: If we are paying an employee in accordance with the FFCRA to cover sick time, do we take MTRS deductions?
A: Yes, take MTRS deductions from that pay.
Q: If we are paying an employee in accordance with the FFCRA to cover dependent care time or anything other than sick time, do we take MTRS deductions?
A: Yes, take MTRS deductions from that pay.
Q: If employees who receive reduced pay under the FFCRA are paid supplemental pay either from their accrued leave time or from a sick bank to bring them to their normal regular compensation level, should MTRS deductions be taken on all their pay?
A: Yes, take MTRS deductions from all their leave pay.
Q: How do we report FFCRA pay?
A: Report FFCRA pay as base earnings.
Q: If an employee’s pay is pro-rated, how do we code it in our deduction report?
A: Choose the service code “UL-Unpaid leave time” on the deduction report and provide a comment that the member was paid under the FFCRA.
Q: Do we need to provide a completed MTRS Leave of absence information (MTRS LOA) form for an employee paid under FFCRA?
A: Yes, when an employee paid under FFCRA has pro-rated pay or a missed check, an MTRS LOA form is required.
Q: Will employees receive full-service credit based on their FT% even when paid pro-rata under the FFCRA?
A: Yes.
Q: Does the MTRS have any other official guidance on the FFCRA?
A: Please see PERAC memo #20 / 2020 and PERAC memo #27 / 2020 for details.
Further questions? Contact your Employer Services Representative.