MANDATORY EMPLOYEE COMMUNICATION REQUIRED
(Download the PDF Poster Below)
The Families First Coronavirus Response Act enacted on March 18, 2020 took effect April 1, 2020 and allows employees to receive qualified paid leave for related COVID 19 circumstances.
We are providing his information to help Chamber Members comply with this new regulation. We are not accountants or attorneys and you will need to get one or both evolved to be sure you are totally in compliance and get the tax credits you deserve for compliance.
Below you will find more information on your responsibilities as an employer with less than 500 employees and what you need to do to document the employees request and how to file for a tax credits to pay for this new benefit.
Some of the things you need to do to comply:
1. Post and/or distribute the PPCRA Poster/Flyer to all eligible employees. (attached)
2. Have employees complete EMPLOYEE STATEMENT to receive benefits. (sample attached)
3. Calculate benefit due and pay employees. (have accountant help with calculations)
4. Submit tax credit forms to IRS for reimbursement. (have accountant help with forms)
The information and links to the information below will be helpful to you and your accountant/attorney with administration and compliance with this new regulation.
Questions pertaining to Information Employers need to get from Employees for Tax credits and How was the payment amount calculated.
5. What information should an Eligible Employer receive from an employee and maintain to substantiate eligibility for the sick leave or family leave credits? (Sample Attached)
An Eligible Employer will substantiate eligibility for the sick leave or family leave credits if the employer receives a written request for such leave from the employee in which the employee provides:
1. The employee’s name;
2. The date or dates for which leave is requested;
3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
4. A statement that the employee is unable to work, including by means of telework, for such reason.
In the case of a leave request based on a quarantine order or self-quarantine advice, the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.
In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include the name and age of the child (or children) to be cared for, the name of the school that has closed or place of care that is unavailable, and a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and, with respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care.
5. What additional records should an Eligible Employer maintain to substantiate eligibility for the sick leave or family leave credit? Check with your Accountant on Credit Calculations
An Eligible Employer will substantiate eligibility for the sick leave or family leave credits if, in addition to the information set forth in FAQ 44 (“What information should an Eligible Employer receive from an employee and maintain to substantiate eligibility for the sick leave or family leave credits?”), the employer creates and maintains records that include the following information:
1. Documentation to show how the employer determined the amount of qualified sick and family leave wages paid to employees that are eligible for the credit, including records of work, telework and qualified sick leave and qualified family leave.
2. Documentation to show how the employer determined the amount of qualified health plan expenses that the employer allocated to wages. See FAQ 31 (“Determining the Amount of Allocable Qualified
Health Plan Expenses”) for methods to compute this allocation.
3. Copies of any completed Forms 7200, Advance of Employer Credits Due To COVID-19, that the employer submitted to the IRS.
4. Copies of the completed Forms 941, Employer’s Quarterly Federal Tax Return, that the employer submitted to the IRS (or, for employers that use third party payers to meet their employment tax obligations, records of information provided to the third party payer regarding the employer’s entitlement to the credit claimed on Form 941).
We hope this will be a help as you implement this new required program and track your payments to qualified employees. I’m sure you will have questions, please direct them to your accountant. We wanted to provide to with this information as a base to get started with your compliance.
Stay Safe, Stay Healthy, Stay Compliant.
Provided as a value added service to Greater Lowell Chamber of Commerce members by:
Stephen J. Mallette
Managing Member
Employer Compliance & Resource Center, LLC
11 Summer Street, Suite 6
Chelmsford, MA 01824
Phone: 1-800-443-4977
Fax: 1-978-256-6580
Cell: 1-978-375-4580
e-mail: smallette@newenglandmedical.com
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Visit our web site: newenglandmedical.com
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NO LEGAL ADVICE: New England Medical Insurance Agency, LLC (NEMIA) & Employer Compliance & Resource Center, LLC (ECRC) are not a law firms and are not rendering any legal, tax, or accounting advice to any user of our services. NEMIA & ECRC have no attorney-client relationship with you as our client and does not express any opinions as to the legal effect or sufficiency of any Documents or Notices on our websites or directly through NEMIA or ECRC e-mails or by any comments or opinions made by our employees.
