IMPORTANT INFORMATION FOR EMPLOYERS – FAMILIES FIRST CORONAVIRUS RESPONSE ACT, H.R. 6021
Effective April 2, 2020 through December 31, 2020 employers with under 500 employees must provide paid sick and paid family leave to employees affected by COVID-19. Affected employers will get a corresponding tax credit. Processes and details are not known at this time. We will provide information as soon as it becomes available. Below is a brief summary:
Emergency Family and Medical Leave Act Expansion
- Provides up to 12 weeks of job protected leave. Employees must have been employed for 30 calendar days.
- ONLY if unable to work or telework to care for a child if the school or childcare provider is closed due to COVID-19
- 10 days can be unpaid, or employees may use other paid leave (including paid leave provided by this Act)
- 10 weeks of paid leave
- Paid at two thirds the regular rate of pay (Capped at $200 per day, $10,000 for 2020)
Emergency Paid Sick Leave Act
- Applies to all employees, regardless of how long they have been employed if they are unable to work because of:
- Self-quarantine or advised self-quarantine
- Experiencing symptoms and seeking diagnosis
- Caring for an individual subject to quarantine
- Caring for a child if school/ daycare is closed
- Self: 10 days paid at regular rate of pay up to $511 per day
- Caring for others: 10 days paid at two thirds regular rate of pay up to $200 per day
Tax Credits for Paid Sick and Paid Family and Medical Leave
- Credit applied to federal employment taxes equal to 100 percent of the qualified sick / family leave wages paid
- Treasury Department and IRS will made advance payments of the credit
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