We are receiving numerous calls and questions regarding the Families First Coronavirus Response Act: Employee Paid Leave Rights which was signed into law on March 18, 2020. And we want to notify you of important details regarding this legislation.
What is it? This is the second piece of legislation aimed at addressing the economic impacts of the COVID-19 pandemic. The bill provides new employee benefits for a limited period of paid sick leave and expands the Family and Medical Leave Act to provide an extended period of unpaid or partially paid leave for a public health emergency.
Who does it impact? This bill impacts ALL employers with fewer than 500 employees. Small businesses with fewer than 50 employees may qualify for exemption for the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern. Further regulations are anticipated in April 2020. Healthcare providers and emergency responders may elect to exclude their employees from provisions of the bill.
What is available to employers? Businesses will be able to take advantage of new tax credits to offset these costs associated with paid emergency leave and sick leave benefits implemented under the bill, as well as providing credit for health plan expenses affiliated with emergency and sick leave wages. Businesses will need to work with their payroll provider for paying employees as well as claiming tax credits.
Self-employed-persons may qualify for a tax credit equivalent to the credit as if they were an employee of an employer. The credit will be taken on the individual’s income tax return and will be calculated based on the average daily self-employment income subject to the same caps per day as an employee.
Effective for a limited period The provisions of the Act are effective on April 2, 2020, and are set to expire on December 31, 2020.
For more information Please see the link below that will take you directly to the Department of Labor’s website for a great summary of the Act: