On March 18, 2020 the Families First Coronavirus Response Act was signed into law to provide relief to employees and small and midsize businesses affected by the Coronavirus pandemic. The act allows most employers with less than 500 employees to take a payroll tax credit on the newly required leave that must be provided to employees affected by COVID-19.
If an employee is unable to work because of quarantine or self-quarantine related to Coronavirus or has symptoms and is seeking a medical diagnosis, the employee can receive two weeks (up to 80 hours) of paid sick leave at their regular rate of pay, up to $511 per day.
If an employee is unable to work because they are caring for someone with Coronavirus, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, the employee can receive two weeks (up to 80 hours) of paid sick leave at 2/3 their rate of pay, up to $200 per day.
The act also expands FMLA to include ten weeks of paid leave at 2/3 the rate of pay, up to $200 per day, for employees who are unable to work because they are caring for a child whose school or place of care has closed in response to COVID-19.
Employers are eligible for tax credits that will offset the cost of providing Coronavirus related leave.
For more details on the act please visit: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus