Families First Coronavirus Response Act, H.R. 6201 Highlights

Families First Coronavirus Response Act, H.R. 6201 is designed to help reduce the financial fall out caused by the COVID-19 outbreak.  Coronavirus is wreaking havoc, but we are here to help you and your business weather the storm.  This act was recently signed into law by the President.

Emergency Family and Medical Leave Expansion Act

• Employees on the job for at least 30 days have the right to take up to 12 weeks of job-protected leave for coronavirus related Issues (e.g., illness, quarantine, care for at-risk family member ill or under quarantine, care for the child of an employee if child’s school/place of care has been closed).
• After two (2) weeks leave (may use paid sick time during the initial two (2) weeks) the employee must be paid no less than 2/3’s of their regular pay for the remaining 12 weeks of leave.
• FMLA revisions only apply to coronavirus related issues.

Payroll Credit for Required Paid Family and Medical Leave

• Tax credit for wages paid against the employer portion of Social Security taxes during the calendar quarter.
• Employers who pay qualified family leave wages will receive a social security tax credit equal to 100% of the wages paid, subject to daily and quarterly dollar caps.
• Tax credits for coronavirus related FMLA leave wages paid are capped for each employee at $200 / day and $10,000 for all calendar quarters. If the credit exceeds the employer’s total portion of social security taxes, the excess credit is refundable to the employer.

Emergency Paid Leave Act

• Employers must provide full-time employees two (2) weeks (80 hrs.) and part-time employees “typical hours worked during a two (2) week period ” of paid sick leave, paid at their regular rate. Pay is required when the employee is required to quarantine, seek a diagnosis, or preventative care as a result of the coronavirus.
• In addition, employees required to care for a family member under similar coronavirus related issues or a child whose school has closed or care provider is unavailable must be paid two-thirds (2/3) of that employee’s regular rate.

Payroll Credit for Required Paid Sick Leave

• Employers will be entitled to a refundable tax credit against the employer portion of Social Security taxes equal to 100% of qualified paid sick leave wages each calendar quarter, subject to daily and quarterly dollar caps.
• When calculating the tax credit for an employee virus related issue employee
wages are capped at $511 a day for all calendar quarters.
• If the employee is caring for a child/family member the wages taken into account are
capped at $200 a day.

Z-Score

If you have under 50 employees and you would like to determine your company’s solvency for the next 3, 6, and 9 months, Contact us about your “prospective Z -Score calculation under Coronavirus economy” today.

Please let us help you understand how this affects you and your business.  We’re here to help.