Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.
Updated March 25, 2020
The IRS, Department of Treasury and Department of Labor have issued updates in anticipation of formal guidance related to the recently passed Families First Coronavirus Response Act (“Act”). Expect more guidance related to tax credits and small employer exemptions later this week. Note this post does not go into detail about eligibility for either type of paid leave. See our previous post describing the new Emergency FMLA Leave and Paid Sick.
Background
The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date (April 2, 2020) and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. [Read more…]
