~ Author – Janice Hogan, Deluzio & Company, Staff Accountant II ~
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.