Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to address the significant economic impact of the pandemic. Drake University has continued to provide full compensation to individuals who are available to work but don’t have enough work available to fulfill their regularly scheduled hours. The CARES Act now offers Drake the opportunity to receive a tax credit for the provided compensation for those non-worked hours.
What should employees do first?
First, contact your manager to find out if there is work available for you to do. The work may include helping your own department or another area with a project that needs assistance. Leaders of each area have been asked to identify projects where additional resources would be welcomed, so consider these as you have time available. If you’re assisting another area simply record those hours on your timesheet as time worked.
I’m not working my full schedule—what should I do now?
In order to qualify for the tax credit Drake needs employees to track the hours they are being paid for time they’re available to work without having work to complete. Even recording small amounts of time is helpful in securing the credit. Exempt employees may record time in increments of one hour and non-exempt employees may record time in 15-minute increments.
- Non-exempt employees will record the hours in the new Employee Retention Credit area of the bi-weekly timesheet. Submitted time will count as “worked hours” for purposes of compensation.
- Exempt employees will record the hours in the new Employee Retention Credit area of the monthly time report. The monthly time report is located on the left margin of the home page of myDrake and is used to track use of vacation, personal leave and sick time. The report is to be submitted by the 15th of the next month following each month’s end, and managers are to approve it by the 20th of the month. A quick reference guide is available for employees and managers.
What time qualifies for the credit?
Compensation that qualifies are any wages paid to employees for time they are not providing services as a direct result of COVID-19. Time for vacation or sick leave does not qualify, even if as a result of the virus.
How does this information help?
Employees are expected to submit this information to assist Drake in qualifying for the federal tax credit. The credit allows Drake to receive a credit against employment taxes for retaining employees during the COVID-19 pandemic. The credit will improve Drake’s financial situation, which benefits all faculty, staff, and students as we continue to achieve our important mission.
Questions may be directed to the HR Partner who supports your group or to the Drake HR email at drakehr@drake.edu.
— Mary Alice Hill, Human Resources