Types of Leave
Paid Sick Leave
. This is 2 weeks of paid leave, not to exceed 80 hours, for
full & part-time
employees regardless of the length of employment. Employees are paid at their regular pay rate or two-thirds of his/her regular pay rate depending on the reason that the employee is taking leave. A per day cap up to $511 and aggregate pay cap up to $5,110 over a two-week period applies.
Expanded Family and Medical Leave
. This is 10 weeks of paid leave for child care that is closed or unavailable due to COVID-19.
Full & part-time
employees are eligible who have been employed with the company at least 30 days prior to requesting leave. The rate of pay is two-thirds of the regular pay rate based on the hours normally scheduled for the employee. There is a per day cap up to $200 and aggregate pay cap up to $2,000 over a two-week period, or up to $12,000 over a twelve-week period if sick leave is combined with expanded medical and family leave.
Pay rate calculations
depend on multiple factors, including the reasons for taking leave.
The above-mentioned downloadable posters outlines these calculations with corresponding reasons.
Recoup Paid Leave Costs.
Employers will recover paid leave through payroll taxes. The IRS will permit employers to retain from payroll taxes an amount equal to the amount of paid leave provided to employees. Eligible payroll taxes are federal income taxes, employee share of Social Security and Medicare taxes, and employer share of Social Security and Medicare taxes. If there are not sufficient payroll taxes to cover the cost of leave paid, employers will be able to file a request for accelerated payment from the IRS. Guidance from the IRS is forthcoming. Stay tuned.