Important Update: Paid Leave Under The
Families First Coronavirus Response Act
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On April 1, 2020, the U.S. Department of Labor (DOL) announced:
- New action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA).
- Gross wages paid under these rules are instantly refunded to the company via a credit against 941 liabilities.
Datapay has upgraded our software with new pay categories to help you comply with these rules and immediately receive your 941 credit. This credit reduces the amount that we escrow for taxes so that your company is never out-of-pocket for these wages.
Emergency Paid Sick Leave – for employees caring for themselves and unable to work (Pay Code: EPSL-Self)
- Employees should be paid under this rule if they a) are subject to a federal, state, or local quarantine or isolation order related to COVID-19, b) have been advised by a health care provider to self-quarantine due to concerns related to COVID-19, or c) are experiencing symptoms of COVID-19 and seeking a medical diagnosis.
- Employees receive 10 days of pay at 100% of their regular rate (daily maximum of $511).
Emergency Paid Sick Leave – for employees caring for others and unable to work
(Pay Code: EPSL-Other)
- Employees should be paid under this rule if they are CARING for a) someone subject to a federal, state, or local quarantine or isolation order related to COVID-19, b) someone who has been advised by a health care provider to self-quarantine due to concerns related to COVID-19, or c) a child if the school or place of care has been closed.
- Employees receive 10 days of pay at 2/3 of their regular rate (daily maximum of $200).
Emergency Family and Medical Leave (Pay Code: EFMLA)
- Employees should be paid under this rule only if they are caring for a child if the school or place of care has been closed and are unable to work.
- The recipient must have been employed for 30 days.
- The first 10 days of leave are unpaid.
- Employees receive 10 weeks of pay at 2/3 of their regular rate (daily maximum of $200).
Please note that employers must track the hours and pay amounts that an employee has used. Our software will not set either daily limits because they can be so varied. Please ask us about adding a tracking report to your payroll package to help you with this.
We HIGHLY Suggest Visiting This Must-Read Link from the Department of Labor
Downloadable Fact Sheets
