As a part of the federal government’s response to the coronavirus’ effect on the working lives of Americans, the President signed into law The Families First Coronavirus Response Act on March 18th, 2020. This new law will require private employers with fewer than 500 employees and all public employers to provide paid sick and family leave to employees affected by the coronavirus (there are exceptions related to certain medical providers). Employees affected by the coronavirus include those who are sick themselves or are unable to work or telework as a result of caring for a child under 18 while the child’s school or care facility is closed.
Employers should track the hours and days that any employees affected by the coronavirus are unable to work, as the Families First Coronavirus Response Act also provides a tax credit for the employer through refundable tax credits against the 6.2% Social Security payroll tax.
For those who are self-employed, the new law provides a similar credit to those who cannot work due to Coronavirus. The limits and caps are slightly different, but the law is intended to provide the same benefits to a self-employed individual who would be entitled to Coronavirus-related sick leave if they were an employee. For this reason, those who are self-employed should also track the days that they are unable to work.
These are difficult times and business owners face additional issues to make sure that both their employees and their business can remain healthy. If you have questions concerning this new law and how this tax credit can help your business, please reach out to Geeslin Group.
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