Families First Coronavirus Response Act (Effective April 1, 2020)
This FMLA expansion applies to most employers with fewer than 500 employees. Small businesses with fewer than 50 employees may claim exemption if they can show that adhering to the FFCRA would jeopardize the viability of the business
Employers who pay benefits under FFCRA are eligible for a refundable payroll tax credit equal to 100% of the amount paid up to certain daily limits
For employees unable to work because the employee is quarantined and/or experiencing COVID-19 symptoms: o Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay
For employees unable to work because they need to care for an individual subject to quarantine: o Two weeks (up to 80 hours) of paid sick leave at 2/3 the employees regular rate of pay
For employees unable to work because they need to care for a child (under 18) whose school or child care provider is closed: o Two weeks (up to 80 hours) of paid sick leave at 2/3 the employees regular rate of pay oUp to an additional 10 weeks of paid expanded family and medical leave at 2/3 the employees regular rate of pay (if the employee has been employed for at least 30 days)
Leave is unpaid for the first 10 days (during which time the employee can elect to use PTO or sick time if offered by the employer)
Does not cover employees whose workplace was forced to close as a result of a stay-at-home order or executive order
Does not cover employees whose workplace closed as a result of lack of business
Unemployment
Employers are encouraged to place employees on temporary or indefinite leave instead of terminating employees
Provide employees with an Unemployment Compensation Notice to assist them in filing for unemployment
Consider the Work Share Program if you can maintain operations but need to reduce hours for all employees
CARES and Payroll
Employers may defer payment of 2020 payroll taxes until 2021 and 2022
Potential tax credit for employers who retain employees who are unable to work due to the employer’s full or partial cessation of business or a significant decline in gross receipts
SBA Paycheck Protection Program offers loans that may be forgivable if employer maintains certain employment levels and avoid a reduction of greater than 25% of wages compared to the prior year