Stimulus Bill Extends FFCRA Tax Credits but Not Leave Mandate 

An appropriations bill, which was signed into law on Dec. 27, 2020, does not extend the leave mandates created by the Emergency Family and Medical Leave Expansion Act (EFMLA) and the Emergency Paid Sick Leave Act (EPSLA), which expire on Dec. 31, 2020.
 
As a result, the requirement for employers to provide employee paid sick leave and expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA) will end on that date.
 
However, the bill does extend the time limit for employer tax credits for employee leave required by those laws. Specifically, the tax credits will continue to be available for employers that offer EFMLA and EPSLA leave through March 31, 2021.
 

Tax Credits for Paid Leave Under FFCRA

The EFMLA and the EPSLA were passed as part of the FFCRA. The FFCRA also created tax credits for employers to cover certain costs of the employee leave required by the law: employee wages, health plan expenses allocable to those wages, and the employer’s portion of the Medicare tax related to the wages.
 
The new bill does not change the FFCRA’s original limits on the number of leave days and amount of wages eligible for tax credits.
 

FFCRA Paid Leave

The FFCRA requires businesses with fewer than 500 employees to provide employees up to 80 hours of paid sick leave for their own COVID-19-related health needs or to care for others. The Act also requires an additional 10 weeks of paid family leave to care for a child whose school or place of care was closed, or child care provider was closed or unavailable, due to COVID-19. The law’s paid leave requirements sunset on Dec. 31, 2020.
 

If you would like to download this article, please fill out the form below. 

 

Combined HR Services provides practical human resources information and guidance based upon our experience in the industry and our experience with our clients.  Combined HR Services are not intended to be a substitute for professional advice.  Combined HR Services are designed to provide general information to human resources and/or business professionals regarding human resources situations commonly encountered.  Given the changing nature of federal, state and local legislation and the changing nature of court decisions, Combined HR Services cannot and will not guarantee that the information is completely current or accurate.  Combined HR Services do not include or constitute legal, business, international, regulatory, insurance, tax or financial advice.