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DOL and IRS Release Guidance on the Families First Coronavirus Response Act

Two important pieces of information were released today on the Families First Coronavirus Response Act (“FFCRA”). The United States Department of Labor issued its regulations on the FFCRA, which provided detailed guidance on how the law should be interpreted.

Families First Coronavirus Response Act Guidance

The DOL’s Wage and Hour Division today announced: “FFCRA helps the United States combat the workplace effects of COVID-19 by reimbursing American private employers that have fewer than 500 employees with tax credits for the costs of providing employees with paid leave for specified reasons related to COVID-19. The law enables employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.” The DOL also will be posting a webinar about FFCRA on its website. That webinar will be available to view this Friday, April 3, 2020.

IRS FFCRA Tax Credit

The IRS also issued detailed FAQs on the process employers need to follow to obtain the tax credits available under the FFCRA.

The IRS summarizes the tax credit available as follows: “The Eligible Employer is entitled to a fully refundable tax credit equal to the required paid family and medical leave (qualified family leave wages). This tax credit also includes the Eligible Employer’s share of Medicare tax imposed on those wages and its cost of maintaining health insurance coverage for the employee during the family leave period (qualified health plan expenses). The Eligible Employer is not subject to the employer portion of social security tax imposed on those wages.” In addition, the FAQs set forth the type of documentation employers should be preserving in order to substantiate entitlement to the tax credit.

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About this Author

Patrick Collins Employment Attorney Norris McLaughlin

Patrick T. Collins is Chair of the firm’s Labor & Employment Practice Group.  He practices labor, employment, and personnel law on behalf of employers and management personnel.  He has a wide range of experience in all areas of litigation in both federal and state courts, defending discrimination and sexual harassment claims, wrongful discharge and whistleblower suits, and claims brought under the Americans With Disabilities Act, the Family and Medical Leave Act, and the multitude of other civil rights and anti-discrimination laws.  In addition, Pat represents parties in breach of...

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