COVID-19 News: Families First Coronavirus Response Act - Tax Credits Start April 1st that Provide Relief to Your Business Now
We mentioned in a recent Women’s Business Daily article that the Families First Coronavirus Response Act (FFCRA) enables employees to receive paid time off when they are quarantined, sick with the virus or taking care of child and unable to work, remotely or on-site. Employees can receive up to 80 hours of paid sick leave and expanded paid child care leave. The amount of pay is determined based on the situation, and caps exist for the amount to be paid.
• If the amount you’re paying in coronavirus-related leave to your employees exceeds your tax liability, you can file for a refund immediately and potentially receive the funds within two weeks.
• You have a 30-day non-enforcement period to work with. So, if you have acted reasonably and in good faith to comply with the act, the U.S. Department of Labor (DOL) will not take action against your business for violations (which could be costly).
If your business has fewer than 50 employees, it’s eligible for an exemption from the requirements to provide leave for an employee to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened. You can get details about FFCRA requirements and the tax credits here.