Dear Employer,
You have previously received information from us with regard to the new
MANDATORY US Department of Labor provisions for employers that have employees affected directly by the Coronavirus. The provisions (FFCRA) apply to employee leave taken between April 1, 2020 and December 31, 2020.
Employers will need to identify sick/family and medical leave amounts paid under FFCRA to the person(s) preparing the company’s payroll checks, as some or all of wage amounts paid under FFCRA are eligible for reimbursement from the Federal government through reduction of payments owed for Federal/FICA/Medicare tax.
FFCRA wages paid are not subject to 6.2% FICA withholding tax (and the corresponding employer match). Health insurance premiums paid or incurred to maintain insurance for an employee on leave under FFCRA will also be reimbursed, along with employer paid Medicare tax. IRS will issue additional guidance regarding reimbursement.
The first link below has information from the US Department of Labor website regarding eligibility, duration, and wage calculations for leave paid under FFCRA. The second link has a recently issued list of questions and answers provided by the Department of Labor.
Below is the link to a sample poster to be displayed at your workplace.
We are available to answer questions regarding the tax ramifications of the Act to the best of our ability based upon information available at this time. Labor and wage/hour questions should be directed to your labor attorney or resolved through an employer relations group such as MRA.
