The Families First Coronavirus Response Act (FFCRA) requires employers to provide sick leave, paid family and medical leave, in addition to tax credits for the paid leave and expanded unemployment insurance.
What types of businesses have to comply?
However, businesses with less than 50 employees may apply for an exemption from the Secretary of Labor with an explanation of how providing paid leave would jeopardize the business.
The Family and Medical Leave Act (FMLA) is expanded under FFCRA and requires employers with less than 500 employees to provide workers with up to 10 weeks of paid FMLA with two weeks unpaid. This outlines:
Which employees are eligible?
Created under the FFCRA, the Emergency Paid Sick Leave Act (EPSLA) requires employers with less than 500 employees to offer paid sick leave to eligible employees. Full-time employees can receive up to 80 hours of paid sick leave and part-time employees can receive pay based on the average number of hours worked in a two week period. Emergency paid sick leave is offered in addition to any existing sick leave and/or paid time off that is already offered by an employer. The Act is effective from April 1 to December 31, 2020.
Employees who are eligible to receive sick leave at the regular rate will be capped a $511 per day and $5,110 total. Employers may claim the Paid Sick Leave Credit to cover these paid leave costs. Employees must be:
Employees who are eligible to receive sick leave at the ⅔ rate will be capped at $200 per day and $2,000 total. Employers may claim the Child Care Leave Credit to cover these paid leave costs. Employees must be:
The Paid Sick Leave and Child Care Leave Tax Credits are refundable payroll tax credits to immediately reimburse employers for the cost of providing coronavirus-related leave to their employees. Employers receive 100% reimbursement for paid leave, including health insurance costs. Employers will not face a payroll tax liability. Self-employed individuals may also receive an equivalent credit. For more information, visit the IRS.