COVID -19 UPDATES

We hope that you are keeping yourself, your loved ones, and your community safe from COVID-19 (commonly referred to as the Coronavirus). Along with those paramount health concerns, you may be wondering about some of the recent tax changes meant to help everyone coping with the Coronavirus fallout and we are here to help and keep you informed:

Below are links to COVID - 19 tax legislation and updates:

Welcome to Deluzio & Company, LLP

We are a full service accounting firm dedicated to our clients, providing quality service with a quality team to assist your company with long term growth and stability. We provide a wide array of services to help you grow and sustain your business.

Our team is built to serve you, specializing in a multitude of areas permitting us to better serve our clients.

We aren’t just any accounting firm. We pride ourselves on quality, experience and drive to help you grow your business. Our greatest success is your success.

Please contact us to discuss those services to help you and your business. Or Click Here to learn more about us.

Families First Coronavirus Response Act

07/21/2020

Families First Coronavirus Response Act – Paid Sick and Family Leave

~ Author - Janice Hogan, Deluzio & Company, Staff Accountant II ~

6 Feet Distance

The Families First Coronavirus Response Act includes provisions to provide emergency paid leave, paid sick leave, child-care leave, and continue family and medical care for eligible businesses and tax-exempt organizations with less than 500 employees. It is a response to assist employers and employees during the Coronavirus April 1, 2020 through December 31, 2020.

Below is a table displaying the guidelines for the different types of leave and credit available:

Eligible Businesses & Tax Exempt Organizations
Type Circumstance Eligibility Employee Employer
Paid Leave (Directly impacted by COVID-19) Employee is unable to work because is self-quarantined, experiencing COVID-19 symptoms, and seeking medical diagnosis Up to 80 hours (2 weeks) at 100% employees pay
Paid Leave (Indirectly impacted by COVID-19) Employee is unable to work because of need to care for an individual subject to quarantine, child for school closed, or child- care provider unavailable due to COVID-19 Up to 80 hours (2 weeks) at 66% (2/3) employees pay
Paid Leave (Indirectly impacted by COVID-19) Employee is unable to work because of need to care for a child whose school is closed or child- care provider unavailable due to COVID-19 **In some circumstances receive up to an additional 10 weeks of expanded paid family and medical leave at 66% (2/3) employee's pay
Paid Sick Leave Credit (Directly impacted by COVID-19) Employee is unable to work because is self-quarantined, experiencing COVID-19 symptoms, and seeking medical diagnosis Refundable credit at employee's regular rate of pay up to $511 per day and $5,110 in the aggregate for a total of 10 days.
Paid Sick Leave Credit (Indirectly impacted by COVID-19) Employee is unable to work because of need to care for an individual subject to quarantine, child for school closed, or child-care provider unavailable due to COVID-19 May claim a credit for 66% (2/3) of employee’s regular rate of pay, up to $200 per day and $2,000 aggregate, for up to 10 days. In addition, a credit is available for maintaining health insurance to employee during leave.
Child Care Leave Credit Employee is unable to work because of need to care for a child whose school is closed or child-care provider unavailable due to COVID-19 In addition to sick leave, the credit is equal to 66% (2/3) of the employee's regular pay, capped at $200 per day or $10,000 aggregate up to 10 weeks. Plus, a credit is available for maintaining health insurance to employee during leave.

A common question is how payments are received by employees, self-employed individuals, and employers. Employees receive the benefit via their paycheck from their employer. Self-employed individuals receive tax credits on their income tax return and may reduce their estimated payments.  Employers receive tax credits via their quarterly payroll tax returns (Form 941). For example, if an eligible employer has $10,000 in payroll taxes but paid $6,000 in sick leave, the employer is only required to pay $4,000 in payroll taxes.

Please contact our office with any questions or more information. We are glad to you during this challenging time.