The Families First Coronavirus Response Act offers COVID-19 paid leave assistance for both employees and employers.
Businesses will get reimbursed.
This new law provides a reimbursement for businesses with fewer than 500 employees for providing employees with paid leave, either for the employee's own health needs or to care for family members, for COVID-19 related reasons.
Here is a summary of the new law's benefits:
Paid sick leave for workers.
The new law provides employees of eligible employers two weeks (up to 80 hours) of paid sick leave at l00% of the employee's pay ($510 daily limit applies) when the employee can't work because the employee is quarantined and/or experiencing COVID-19 symptoms and seeking a medical diagnosis.
Paid leave for workers.
Employees can receive two weeks (up to 80 hours) of leave at two-thirds of the employee's pay ($200 daily limit applies) if they need to care for someone in the following situations - the need to care for an individual subject to quarantine, to care for a child whose school is closed, or childcare provider is unavailable for reasons related to COVID-19.
Extended leave.
In some instances, an employee may receive up to an additional ten weeks of expanded paid family and medical leave at two-thirds the employee's pay ($12,000 overall, twelve-week payment limit applies).
Companies will get paid back.
Businesses who pay employees the mandatory sick and childcare leave according to the new law will get reimbursed through a payroll tax credit.
What you need to do now – If you are an employee.
To take advantage of the Act's paid leave provisions, you must provide your employer with documentation in support of your paid sick leave. As of press time, there was no official application that needs to be completed. If you have questions or concerns, you may call the Department of Labor's Wage and Hour Division at l-866-4US-WAGE or visit www.dol.gov/agencies/whd.
What you need to do now – If you are an employer.
Keep detailed records.
Be prepared to defend your request for federal assistance. Keep good records of who's asked for paid time off because of COVID-19 related circumstances.
Talk to your payroll provider.
If you have someone doing your payroll, they are often the first ones who will know how you will receive reimbursement. Payroll companies will eventually issue guidance on how to report paid leave provided under the Families First Act and which forms need to be completed to obtain the corresponding tax credits.