On March 18, 2020, President Trump signed the Family First Coronavirus Response Act. Included in this law, was a refundable credit for paid sick leave and paid family leave taken on the Employer’s Quarterly Federal Tax Return (Form 941). Employers with fewer than 500 employees must provide an employee with paid sick time if the employee cannot work, remotely or in person, due to:
- an employee subject to a COVID-19 quarantine or isolation order;
- an employee who has been advised by a health care provider to self-quarantine due to COVID-19 concerns;
- an employee who is experiencing symptoms of COVID-19 and is seeking a medical diagnosis;
- an employee caring for an individual described in (i) or (ii) above;
- an employee caring for a child whose school or place of care is closed, or the child care provider of the child is unavailable, due to COVID-19 precautions; or
- an employee who is experiencing any other substantially similar condition specified by the Secretary of HHS in consultation with the Treasury and Labor Departments.
Workers taking leave for themselves must be paid the greater of their normal wage or the applicable federal, state, or local minimum wage. Workers taking time off to care for family members must be paid at two-thirds of the foregoing rate. Sick leave is capped at $511 per day and $5,110 in the aggregate for leave taken in categories 1 through 3 described above (i.e., on one’s own behalf), and capped at $200 per day and $2,000 in the aggregate for leave taken in categories 4 through 6 (i.e., to take care of another).
If you have any questions related to this Act, please contact your Accountant for assistance.
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