The FFCRA law requires employers with fewer than 500 employees to provide paid sick and FMLA leave due to COVID-19. Any employee who works for a smal
l business qualifies
. The FFCRA’s paid leave provisions apply to leave taken between April 1, 2020, and December 31, 2020.
What does the FFCRA Cover?
- Two weeks (up to 80 hours) of paid sick time at regular pay for employees who are quarantined and/or experiencing COVID-19 symptoms; OR
- Two weeks (up to 80 hours) of paid sick time at 2/3 pay for employees who:
- need to care for an individual subject to quarantine OR
- need to care for a child whose school or child care provider is unavailable AND/OR
- are experiencing a substantially similar condition as specified by the Department of Health and Human Services
- Up to an additional 10 weeks of paid FMLA leave at 2/3 pay for employees who:
- have been employed for at least 30 calendar days AND
- are unable to work due because they need to care for a child whose school or child care provider is unavailable
Small Business Exemption
- the employer has fewer than 50 employees;
- leave is requested because the child’s school or child care provider is unavailable due to COVID-19 related reasons; and
- an authorized officer of the business has determined that at least one of the following three conditions is satisfied:
- Providing leave would put the business' expenses above its revenues;
- The employee requesting leave has skills, knowledge of the business, or responsibilities that are essential to the financial health or operational capabilities of the business
- There are not sufficient workers to perform the the work of the employee(s) requesting leave, and this work is needed for the business to operate at a minimal capacity.
FFCRA and Tax Credits
Private-sector employers that provide leave required by the FFCRA are eligible for reimbursement of the costs of that leave through refundable tax credits. If you intend to claim tax credit for your payment of the leave wages, make sure to retain appropriate documentation in your records, as defined by the
Internal Revenue Service
You will not be able to double-count tax credits. If wage costs are used for the Family First Credit, they cannot also be forgiven through the SBA Paycheck Protection Program.
The information included in this email is meant to be informational and is not legal or tax advice. Please contact your professional partners if you have specific questions.