Families First Coronavirus Response Act

The Families First Coronavirus Response Act (FFCRA) provides sick leave, free coronavirus testing, expanded food assistance and unemployment benefits, and additional protection for health care workers.

PAID SICK LEAVE AND FAMILY LEAVE:
Covered employers must provide to all employees:

  • Two weeks of paid sick leave at the employee’s regular rate of pay if the employee is unable to work because of quarantine per government order or health care provider’s advice and/or is seeking a medical diagnosis due to COVID-19 symptoms
  • Two weeks of paid sick leave at two-thirds the employee’s regular pay if the employee is unable to work due to:
    • Need to care for individual subject to quarantine as described above
    • Need to care for a child under age 18 whose school or child care provider is closed due to COVID-19
    • Employee is experiencing a similar condition specified by Secretary of Health and Human Services, Treasury and Labor

Covered employers must provide to employees who have worked for at least 30 days:

  • Up to 10 additional weeks at two-thirds of the employee’s regular pay to care for a child under age 18 whose school or child care provider is closed due to COVID-19

Private employers with less than 500 employees and certain federal government employees are covered employers. Small businesses with less than 50 employees may qualify for an exemption for the expanded 10 weeks provision. Reasons for leave and duration of leave have a number of specific qualifications.

Covered employers qualify for refundable payroll tax credits to cover employee’s wages and costs to maintain health insurance coverage. This enables employers to keep workers on payroll. Employers receive an immediate payroll tax offset. Self-employed individuals qualify for an equivalent credit, which they claim on their tax returns as estimated payments. The law is effective from April 1, 2020, through December 31, 2020.

For further information, click here to view the questions and answers section on the US Department of Labor site.

OTHER PROVISIONS:

  • Expands unemployment benefits an additional 13 weeks and grants to states for processing and paying unemployment claims
  • Modifies food assistance and nutrition programs allowing waivers for school meal programs, nutrition for the elderly, and SNAP (Food Stamps) benefits
  • Requires free coronavirus testing
  • Makes personal respiratory protective devices eligible for liability protection
  • Increases Medicaid funding during the pandemic

Tax Acts of 2020

About Judy Murray, CPA