Tax Credits

IRS Guidance on Tax Credits for Employee Leave Under the FFCRA

The Families First Coronavirus Response Act (FFCRA), passed in March 2020, required small and midsized employers to provide paid employee leave for specific COVID-19-related reasons through Dec. 31, 2020. The FFCRA also provided tax credits for employers to cover the cost of the leave.

DOL Updates Q&A on COVID-19 and the FMLA

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has updated its “COVID-19 and the Family and Medical Leave Act Questions and Answers” web page, originally published in 2020. As before, the Q&As explain that—under the FMLA—covered employers must provide eligible employees with job-protected, unpaid leave for specified family and medical reasons. Additionally, employees on FMLA leave are entitled to the continuation of group health insurance coverage under the same terms that were in effect before they took leave.

IRS Issues Employer Resources on FFCRA Leave Tax Credits

The IRS has released new resources explaining the tax credits available for employers who opt to provide paid family leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA) through Sept. 30, 2021. The new resources consist of a fact sheet and a “snapshot” document published on April 21, 2021, in conjunction with public remarks by President Joe Biden calling on employers to help their employees get vaccinated.

President Biden Announces Tax Credit for Small Businesses Offering Paid Leave for Vaccination

Recently, President Joe Biden issued a call for employers to take additional steps to help get their employees and communities vaccinated against COVID-19.

As part of that effort, president Biden announced a paid leave tax credit for small- and medium-sized businesses. This credit will allow eligible employers to fully offset the cost of paid leave for employees to get vaccinated and recover from any after-effects of the vaccination.

IRS Updates FAQs on Employer Tax Credits for FFCRA Leave

On Jan. 29, 2021, the IRS updated its frequently asked questions (FAQs) on tax credits available to employers for providing paid employee leave under the Families First Coronavirus Response Act (FFCRA). While the leave requirements of the FFCRA expired on Dec. 31, 2020, the law’s tax credits were extended for employers that voluntarily provide FFCRA leave to employees through March 31, 2021. The FAQ updates address this extension.