The Families First Coronavirus Response Act provided a variety of provisions to help keep people healthy during this crisis. In addition, the bill provides assistance for individuals and their families while trying to not overburden employers.
The following is a summary of the key provisions of the Act. Please see our detailed overview of the bill by clicking here.
- Require employers to provide two weeks (10 days) of paid sick leave for COVID-19-related leave (for a quarantined employee or for the employee to care for a sick person), regardless of how long the employee has been employed.
- Sick leave compensation for a sick employee is capped at $511 per day, while sick leave compensation for an employee to care for someone else is capped at $200 per day
- Provide a payroll tax credits to employers in an amount equal to 100 percent of the two-week sick leave wages paid for COVID-19-related leave. This credit is refundable to the extent the amount paid exceeds the quarterly payroll taxes.
- Provide a refundable tax credit to eligible self-employed individuals who take two weeks (10 days) sick leave in the amount equal to the lesser of:
- $511 per day or 100% of the average daily self-employment income of the individual for sick individuals; and
- $200 per day or 67% of the average daily self-employment income of the individual taking care or someone else.
- Provide for paid family leave for 10 weeks (in addition to the two weeks of sick leave) for employees with minor children who are unable to work due to COVID-19-related school or daycare closure
- Provide a payroll tax credit, capped at $200 per employee per day and $10,000 total, equal to the amount of qualified family leave wages paid. This credit is refundable to the extent the amount paid exceeds the quarterly payroll taxes.
We will continue to closely monitor the economic and tax changes and communicate important information to you timely and accurately. We are always available by phone or email to address your questions and concerns.