Below are some general takeaways from the law signed by President Trump on 3/18/20 called the Families First Coronavirus Response Act (FFCRA).

  • Its effective date is April 2, 2020 
  • It includes provisions for businesses with fewer than 500 employees to provide employees with paid leave, either for:
    • The employee’s own health needs, or 
    • To care for family members. 
  • It requires Employers to pay for: 
    • Sick Leave (up to 10 days)*
    • Paid Leave (up to 10 weeks)*
    • At employees’ full wage rate or ⅔ wage rate, depending on the causes for the leave
  • There is an exemption for employers with less than 50 employees but the details on how to qualify for the exemption will be released this week (hopefully).  We post an update as soon as we hear more details as we know this will apply to many of our small business clients. 

The Act also provides a payroll tax credit to employers that shall cover 100% of the Sick and  Paid Leave costs, as well as employers’ health insurance costs. If an employer’s costs exceed the available tax credit, the IRS promises to refund the differences within two weeks. More details to come this week.

Source: IR-2020-57

Additional Helpful Links:

Q&A “5 Things to Know” about FFCRA from HRDIVE

Gusto Webinar “Navigating COVID-19 as a Small Employer” (1hr:8min)

Gusto Blog “Everything Small Businesses Need to Know About the Families First Coronavirus Response Act”

Gusto Blog “ An Employer’s Guide to Navigating the Coronavirus”

Quick & important note: Accountix is not a law firm or HR advisor. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance.