COVID-19 | FFCRA Emergency Sick Leave Payroll Tax Credit

If you applied for and have received your PPP loan funds, you may be curious about what tax credits now apply to you. Perhaps, regardless of whether you qualified for a PPP loan, you want to explore possible tax credits that could apply for your business? When it comes to emergency sick leave payroll tax credits, there are options for both situations. Check out our list of the Families First Coronavirus Response Act (FFCRA) items you should know.

While we anticipate additional guidance to be forthcoming, there are things you can do today to maximize loan forgiveness and leverage relief tax credits. We compiled the list below to help give you a summary of relief options to consider.

FFCRA Emergency Sick Leave Payroll Tax Credit

1. Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
2. Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.
3. The employer has fewer than 500 employees per entity.
4. Pays employees who request up to 80 hours of leave for COVID-19 related self-care or care of others
5. Credit limited to lesser of 100% or two-thirds of employee’s regular pay or daily rate of $511/$200 depending on the reason for leave
6. Employers must provide to employees that have been employed for at least 30 days