The federal Families First Coronavirus Response Act (FFCRA) expired on December 31, 2020 – and with it, certain employers’ obligation to provide emergency paid sick leave and emergency family and medical leave. Congress just extended the tax credit for all employers who voluntarily provide such paid leave through March 31, 2021.  The most recently legislation, titled The American Rescue Plan Act:

  • Extends the tax credits available for employers who voluntarily provide FFCRA leave to September 30, 2021 with the required documentation.
  • Provides that the tax credits are available for paid sick leave and paid family leave provided for these new reasons:
    • the employee is obtaining immunization (vaccination) related to COVID-19;
    • the employee is recovering from any injury, disability, illness or condition related to such vaccination; or
    • the employee is seeking or awaiting the results of a diagnostic test or medical diagnosis for COVID-19 (or their employer has requested such a test or diagnosis).
  • Employers who voluntarily provide leave must do so in a uniform manner, without discriminating against certain categories of workers.  For example, you may not discriminate against highly compensated employees, full-time employees, or employees with seniority.
  • Re-sets the 10-day limit for the tax credit for paid sick leave under the FFCRA beginning April 1, 2021. As a result, an employer could voluntarily provide an additional 10 days of FFCRA paid sick leave beginning April 1, 2021, and would be eligible for a tax credit for doing so. But employers are not required to do so.

We continue to monitor legislation related to the COVID-19 and all changes in employment law and policy due to the change in administrations.  As always, we welcome your questions and are eager help identify solutions for your business.