FFCRA TAX CREDIT EXTENDED TO MARCH 31ST
The Families First Coronavirus Response Act (FFCRA), which provides paid leave for specified COVID-related reasons, went into effect on April 1, 2020 and is set to expire on December 31, 2020. There has been a lot of speculation as to whether FFCRA would be extended, replaced with something else, or allowed to expire as written. With the passage of the latest COVID relief package, we now know the fate of FFCRA.
The COVID relief package passed by Congress and signed by President Trump on December 27th provides, in part, for the extension of the FFCRA tax credits for businesses that provide paid sick leave and paid family leave through March 31, 2021. It does not extend the mandate to provide those leaves, however; that mandate will expire on December 31st. So, what does that mean for employers?
That means that as of January 1, 2021, employers may, but are not required to, provide paid sick leave and paid family leave as outlined by FFCRA. However, if an employer continues to provide paid leave that would have been required by FFCRA had the mandate been extended, they can claim a tax credit to cover the cost of the paid leave through March 31, 2021. That includes both emergency paid sick leave (EPSL) and emergency family and medical leave (EFMLA).
It’s important to note that this does not increase or otherwise amend the amount of paid leave provided to employees under FFCRA. It also does not increase the total amount of the tax credit available. Any paid sick leave or paid family leave taken on or before December 31st will count against the total amount of any tax credit that can be claimed for leave taken through March 31st.
Even if employers choose not to continue to provide FFCRA leave after December 31st, they should remember that they continue to have obligations under other state or federal laws — like ADA, FMLA, and Nevada’s paid leave law — which may apply.
Nevada Association of Employers (NAE) will continue to monitor and provide updates as we receive more information to assist employers in understanding what their obligations are. If you have questions about this or other issues related to COVID-19 and your business, please contact us at email@example.com or (888) 398-8092.
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