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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).
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.
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.
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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.