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USA: Families First Coronavirus Response Act (FFCRA)
What is it?
Employers (businesses with fewer than 500 employees) are required to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from the effective date of April 2020 through December 31, 2020.
- Businesses reduced/shutdown due to Covid-19 or
- have incurred greater than or equal to 30% drop in sales in comparison to the 2019 quarter
Who is Eligible?
- All employers with less than or equal to 500 employee
Provision Based on Leave Reasoning
Sick and Family Leave Refundable Tax Credits
Eligible employers that pay qualified leave wages will be able to retain an amount of all federal employment taxes equal to the amount of:
- The qualified leave wages paid
- The allocable qualified health plan expenses and
- The amount of the employer’s share of Medicare tax imposed on those wages
The federal employment taxes that are available for retention by eligible employers include federal income taxes withheld from employees, the employees’ share of social security and Medicare taxes, and the employer’s share of social security and Medicare taxes with respect to all employees.
- https://www.congress.gov/bill/116th-congress/house-bill/6201 - US Congress
- https://www.dol.gov/agencies/whd/pandemic - US DOL
- https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave - FFCRA Act Fact Sheet
- https://www.dol.gov/agencies/whd/pandemic/ffcra-questions - FFCRA FAQs
- https://www.irs.gov/coronavirus - IRS
- https://home.treasury.gov/news/press-releases/sm952 - US Treasury Dept Press Release
- https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf - FFCRA Poster