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Understanding the Families First Coronavirus Response Act (FFCRA)

By April 1, 2020 Small Business

The Families First Coronavirus Response Act was one of the first bills passed to support employees affected by the coronavirus (COVID-19). Here is a quick summary.

Qualification

You qualify for FFCRA benefits if you:

  • Have less than 500 employees (including full-time, part-time, and temp)
  • Employee has been employed for 30 days prior to their leave request
  • Credits also available to those who are self-employed

FFCRA is in effect April 1st through Dec. 31, 2020.

Sick Leave Credit

If you have an employee that:

  1. Is subject to a Federal, State, or local quarantine or isolation order
  2. Has been advised to self-quarantine
  3. Is experiencing symptoms and is seeking a medical diagnosis

Because of COVID-19 and cannot work (including CANNOT telework), then the employee will receive:

  • 100% wage coverage for 2 weeks (up to 80 hours) up to $511 daily or $5,110 total

Child Care Leave Credit

If you have an employee that:

  1. Is caring for an individual subject to a quarantine or isolation order
  2. Is caring for his/her child whose school or daycare has been closed
  3. Is experiencing any other substantially similar condition

Because of COVID-19 and cannot work (including CANNOT telework), then the employee will receive:

  • 2/3 of wage coverage for 2 weeks (up to 80 hours) up to $200 daily or $2,000 total

10 additional weeks of leave available at 2/3 of wage coverage for above reasons related to COVID-19 (up to $200 daily and $12,000 total).

Exemptions

  • Companies with 50 employees or less do not have to grant leave for the Child Care Credit if the viability of the company is threatened.
  • Health Care workers and professionals can also be exempt from leave credits.

How to Acquire Credit Funds

Employers would deduct dollar for dollar the amount they pay an employee for qualifying leave from their payroll taxes. If an employer pays more for leave then they would on their payroll taxes, they can file for an expedited refund.

Helpful Links:

FFCRA Federal Poster- Required to hang in a conspicuous place in work environment

https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf

FFCRA Q&A: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

FFCRA Employee Rights – https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave

FFCRA Employer Requirements – https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Other Helpful Links:

https://blog.employerscouncil.org/2020/03/23/irs-announces-immediate-reimbursement-for-employers-providing-mandated-leave/

https://www.irs.gov/coronavirus

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