On Wednesday night, President Trump signed the much-anticipated Coronavirus Relief Package (Families First Coronavirus Response Act) (the ACT) which provides important implications for both workers and employers.
Paid Sick Leave
Among the provisions included in the new law, private employers with less than 500 employees must provide up to two weeks of paid sick leave. Eligible employees are unable to work (or telework) because they are being tested or have been diagnosed with coronavirus, or they have been told to stay home because of exposure or symptoms. The Department of Labor has the ability to exempt companies with less than 50 employees.
Extension of FMLA
Private employers with fewer than 500 employees are also required to provide up to 12 weeks of Family Medical Leave Act (FMLA) leave for employees employed for 30 days who have a qualifying need related to the pandemic.
Refundable Payroll Tax Credit Applicable to Tax-Exempt Organizations
The Act includes a refundable payroll tax credit provision allowing all employers, including tax-exempt organizations, to recoup the costs of the unpaid leave mandates included in the final version.
For the full list of the provisions signed into law under the Act and additional details, visit (https://www.congress.gov/bill/116th-congress/house-bill/6201).
Congress is currently working on additional bills needed to address the impact of COVID-19 on businesses and their employees. Meanwhile, AICPA is urging IRS to postpone the April 15 (and other filing deadlines) to assist taxpayers and CPAs.
GRF has established a special webpage to summarize these developments and provide COVID-19 response resources to our clients. Visit https://www.grfcpa.com/resources/covid-19-coronavirus-response/ to learn more.
As always, we will keep you up to date with developments as they happen. For questions or more information, please contact our tax team.
Troy Turner, CPA
Vice President, Director of Tax
GRF CPAs & Advisors