Here is the DOL clarification on FFCRA as of late 3/22,
Families First Coronavirus Response Act https://www.dol.gov/agencies/whd/pandemic
In summary, there are 3 different tax credits to pay employees (for businesses under 500 employees, some exceptions for under 50, we do not know what the exceptions are or how to get them yet).
- The employee is sick due to COVID or seeking treatment, the employee must be paid sick leave per the FFCRA up to $511 per day for 80 hours over 2 weeks with a cap of $5,110 (their regular pay rate). There is a 2-week waiting period before mandatory paid sick leave begins.
- A qualified family member is sick due to COVID or seeking treatment, the employee must be paid up to $200 per day for 80 hours over 2 weeks with a cap of $2,000 (after a 2-week waiting period). For family care, the employer can reduce the employee’s pay to 2/3 of the regular rate as long as the minimum wage is met.
- Childcare for a qualified child is unavailable, the employee must be paid up to $200 per day for 80 hours over 10 weeks with a cap $10,000 (after a 2-week waiting unpaid period). So this is really over 12 weeks, 12,000 but only 10,000 is a tax credit). The employer can reduce the employee’s pay to 2/3 of the regular rate as long as the minimum wage is met.
- An employee can choose to use PTO in the first 2 weeks or throughout this time off.
- The employer receives a tax credit for this paid leave up to the limits listed.
- Tracking of time off and reasons are very important. No official forms are out yet.
- Employers not having work available do not qualify for tax credit nor do employees qualify for paid sick or family leave. Unemployment usually will cover some of this (all states have different rules).
- The 6 qualification reasons why sick leave must be paid are listed in this DOL article.