The Families First Coronavirus Relief Act (FFCRA) signed into law on March 18, 2020 requires certain employers to provide their employees with up to 80 hours of paid sick leave and/or 10 weeks of expanded family and medical leave for specified reasons related to COVID-19. The Act also provides businesses with new refundable tax credits to cover the cost of providing the required leave to employees for reasons related to COVID-19.
The Paid Sick Leave Credit and the Paid Family Leave Credit are available to eligible employers who paid qualified sick leave wages and/or qualified family leave wages from April 1, 2020 through December 31, 2020. The credits can be combined, so an employer could be entitled to claim a credit for employee wages they paid for up to 12 weeks - 2 weeks of sick leave and 10 weeks of family leave.
Paid Sick Leave Credit
If an employee is unable to work for any of the following reasons, a qualified employer can claim a credit for paid sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in total up to 80 hours:
- They are subject to a COVID-19 quarantine or isolation order.
- They are advised to self quarantine because of COVID-19.
- They have COVID-19 symptoms and are seeking a medical diagnosis.
If an employee is unable to work for any of the following reasons, a qualified employer can claim a credit for paid sick leave at two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in total for up to 80 hours:
- They are caring for someone who is subject to a COVID-19 quarantine or isolation order, or for someone who has been advised to self-quarantine because of COVID-19.
- They are caring for a child whose school or place of care is closed due to COVID-19.
- They are caring for a child whose childcare provider is unavailable due to COVID-19.
Family Leave Credit
If an employee is unable to work for any of the following reasons, a qualified employer can claim a credit for paid family leave at two-thirds of the employee's regular rate of pay, up to $200 per day, or $10,000 in total. Up to 10 weeks of qualifying leave can be counted toward the Family Leave Credit.
- They are caring for a child whose school or place of care is closed due to COVID-19.
- They are caring for a child whose child care provider is unavailable due to COVID-19.
Additional Information: