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The IRS updated its FAQs regarding tax credits available to employers for providing paid employee leave under the Families First Coronavirus Response Act (FFCRA).
Leave Provisions
FFCRA required employers with less than 500 employees to provide emergency paid sick leave and 10 weeks of expanded paid family leave for specified COVID-19-related reasons. These requirements expired on December 31, 2020.
Tax Credits
Employers could receive tax credits to cover certain costs of the employee leave required by the law. While the FFCRA leave requirements expired December 31, 2020, the Consolidated Appropriations Act, 2021 extended tax credits to those employers who voluntarily offer leave that would have qualified under the FFCRA through March 31, 2021.
Employers who are eligible can claim credits on their federal tax returns, but they can benefit more quickly from the credits by lowering their federal employment tax deposits.
Download the bulletin for more details.
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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
