The House and Senate passed the Families First Coronavirus Response Act (H.R. 6201) and President Trump signed the Bill on March 18, 2020. The Bill will provide:
- Free coronavirus testing, provided under group health plan or insurance coverage;
- Paid emergency leave for leave beyond 10 days;
- Enhanced unemployment insurance;
- Additional funding for nutritional programs;
- Protections for health care workers and employees responsible for cleaning at-risk places;
- Additional federal funds for Medicaid
The H.R. 6201 Bill provides 80 hours of Paid-Sick-Leave benefits for the following:
- Employee has been ordered by the government to quarantine, or has been advised by a health care provider to self-quarantine because of COVID-19
- Employee presents with symptoms of COVID-19 and is seeking a medical diagnosis
- Employee caring for an individual who is in quarantine or isolation
- Employee’s child’s school or child care service is closed because of the public health emergency
The Paid Sick Leave Benefits provide two-thirds of employees pay and capped at $511 per day for a worker’s own care and $200 a day when the employee is caring for someone else. This benefit begins April 2, 2020 and expires December 31, 2020.
Under the H.R. 6201 Bill, Paid Family Leave is also available to care for a child if the school or place of care is closed (qualified family leave). Employees must be on payroll for at least 30 calendar days to be eligible. The benefits paid are two-thirds of employees pay capped at $200 a day. This benefit will pay two-thirds of wages for up to another 10 weeks leave beginning April 2, 2020 and expires December 31, 2020.
Payroll Tax Credits for Required Paid Sick Leave and Required Paid Family Leave:
All non-governmental employers with less than 500 employees are allowed a credit against employer Social Security Tax Liability equal to 100 percent of the required sick leave wages paid by the employer, subject to the limits discussed above. For self-employed persons, the credit is allowed against regular income taxes.
For required family leave wages paid by an employer, a separate refundable payroll tax credit applies, with different limitations. The 100 percent credit against employer Social Security Tax Liability is limited to $200 per day, up to $10,000 per employee. For self-employed persons, the credit is allowed against regular income taxes.
Contact us for assistance or questions about how to comply with these requirements.