5 minute read | April.02.2020
On March 31, 2020, the IRS issued “COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs” to help small and midsize employers navigate the tax relief available under the Families First Coronavirus Response Act (“FFCRA”).
As we have previously reported, for employers with less than 500 employees, the FFCRA provides for additional paid leave for employees who are unable to work due to certain qualifying COVID-19-related reasons (see Families First Coronavirus Response Act: What Employers Need to Know).
The IRS FAQs provide additional guidance on a number of important aspects of the FFCRA tax relief, including:
The IRS FAQs further explain that if the leave is based upon a quarantine order or self-quarantine advice, the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.
If the leave request is based on a school closing or child-care provider unavailability, additional details should be included in the employee statement supporting the need for leave, including:
We will continue to post updates as further guidance is issued as to the FFCRA and the CARES Act. Check Orrick’s COVID-19 Resource Center for other COVID-19 related information.