The Families First Coronavirus Response Act (FFCRA) leave provisions — Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Act (EFMLA) — apply to qualifying leave taken today April 1st through December 31, 2020. The DOL just issued regulations applicable to these provisions.

Employers subject to the leave requirements (generally employers with fewer than 500 employees, with some exceptions) will be reimbursed for the paid leave in the form of IRS tax credits. In addition to the paid leave amounts, the IRS will allow tax credits for costs incurred/paid by the employer for health coverage provided during this time of leave.

Our Bulletin below contains an overview and FAQs from the IRS website. Additionally, the IRS released Form 7200 and Instructions for employers to request an advance payment of the tax credit. Continue to monitor the IRS website for new information pertaining to the tax credit, such as possibly a new Form 941. Contact your payroll provider or tax advisor to take advantage of these tax credits.

If you have questions or need help, please contact one of our benefit consultants.

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Check out our COVID-19 Resource Center for more resources and information.