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BHBM Tax Law Alert | Families First Coronavirus Response Act


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FEDERAL TAX LAW UPDATE

President Trump Signs Families First Coronavirus Response Act

On March 18, 2020, the Senate passed the Families First Coronavirus Response Act (the “Act”). The Act is part of the government’s response to the economic impact of the COVID-19 virus. The bill was signed into law by President Trump shortly after being passed by the Senate. Now that the legislation has been signed, the provisions of the bill will become effective in fifteen (15) days.

Emergency Family and Medical Leave Expansion Act

Emergency Paid Sick Leave Act

This portion of the Act allows an eligible employee to take paid sick leave because the employee is:

(1) Subject to a federal, state or local quarantine or isolation order related to COVID-19;

(2) Advised by a health care provider to self-quarantine due to COVID-19 concerns;

(3) Experiencing COVID-19 symptoms and seeking medical diagnosis;

(4) Caring for an individual subject to a federal, state or local quarantine or isolation order or advised by a health care provider to self-quarantine due to COVID-19 concerns;

(5) Caring for the employee’s child if the child’s school or place of care is closed or the child’s care provider is unavailable due to public health emergency; or

(6) Experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

Please note that caring for another who is subject to an isolation order or advised to self-quarantine as described above is no longer limited solely to family members.

Tax Credits for Paid Sick and Paid Family and Medical Leave

Moreover, employers are entitled to a refundable tax credit equal to one hundred percent (100%) of the qualified family leave wages paid by employers for each calendar quarter in accordance with the Emergency Family and Medical Leave Expansion Act. The qualified family leave wages are capped at $200 per day for each individual up to $10,000 total per calendar quarter. Only those employers who are required to offer Emergency FMLA and Emergency Paid Sick Leave may receive these credits.

DOL guidance on the issue can be found here: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave


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The information contained within this newsletter does not constitute legal advice and is not intended to create an attorney-client relationship. You should consult an attorney for individual advice regarding your own particular situation.


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