Contractors Receive Payroll Tax Credit for
PDC #30 Health & Welfare Fund Contributions
100% Payroll Tax Credit to Employers Who Continue H&W Contributions on Employees Utilizing COVID-19 FFCRA Paid Leave
Attention FCAI Contractor Members:

If you have PDC #30 employees who are currently utilizing the COVID-19 FFCRA two-week paid sick leave or the 10-weeks of additional paid expanded family and medical leave, not only will you be fully reimbursed for those employee wages, but also some benefits.  FCAI suggests that contractor members continue to contribute into the PDC #30 Health and Welfare fund on their employees behalf, while on leave, since employers will be reimbursed for that contribution through weekly payroll tax credits.
The purpose of continuing to contribute on the employee's behalf to the PDC #30 Health and Welfare fund is so the employee(s) will maintain health insurance coverage during their FFCRA sick leave.  FCAI employers will receive a full refund/100% tax payroll credit for this paid leave in accordance with FFCRA.
FCAI is also asking contractors to notify the PDC #30 Benefits Office or the District Council when they’re made aware of positive Coronavirus tests among their employees.
FCAI Employers may contact Lisa Mills at  with questions regarding contribution remittance.
Two New COVID-19 Refundable Payroll Tax Credits
The U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) have announced that small and midsize employers can take advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. 
This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.
The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. 
The legislation enables employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
Key Takeaways
Paid Sick Leave for Workers
For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable.
Complete Coverage
Employers receive 100% reimbursement for paid leave pursuant to the Act.
  • Health insurance costs are also included in the credit.
  • Employers face no payroll tax liability.
  • Self-employed individuals receive an equivalent credit.
Fast Funds
Reimbursement will be quick and easy to obtain.
  • An immediate dollar-for-dollar tax offset against payroll taxes will be provided.
  • Where a refund is owed, the IRS will send the refund as quickly as possible.
Small Business Protection
Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
Easing Compliance
  • Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form.
For more information regarding the COVID-19 tax credits to employers,   click here .