The Families First Coronavirus Response Act (the "FFCRA"), signed by President Trump on March 18, 2020, provides small and midsize employers (under 500 employees) refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
As the spread continues to increase in our area, we want to send a quick reminder that there is a credit that is available to ALL EMPLOYERS under 500 employees that assists your business in continuing to pay your employees. Here are some highlights of the credit:
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Credit for up to 80 hours. Two weeks of payroll can be paid to an employee at 100% of their pay if the employee is quarantined or 2/3 of their pay if a family is quarantined. This can be expanded to 12 weeks total, if an employee is unable to work due to child care providers being closed or unavailable.
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All employees covered - part time too! All employees are eligible for the two weeks of paid sick time, including part time staff. For the additional 10 weeks of paid family leave, the employee must have been employed for at least 30 days.
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Refundable credit. The credit is a fully refundable tax credit equal to qualified wages, plus employer Medicare tax and cost of health insurance coverage of that employee. For more information on claiming the credit, go to irs.gov.
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Available for those who received PPP funds. The credit is available to ALL employers including those who received PPP, EIDL or grant funding.
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Already had an employee quarantined? An adjustment can be made to get your business the credit. Contact your payroll provider or our office for assistance.
For additional information go to the Department of Labor
website, watch this
webinar on the credit, or contact our office.
