Both DOL and IRS Issue Guidelines for Employers
Government agencies are beginning to release information relative to how employers can be in compliance with the new Family First Coronavirus Act which is effective April 2, 2020. Below is guidance from both the Department of Labor as well as the IRS. We will continue to post relevant updated content on our COVID-19 page.
By April 9, 2020, employers must keep a notice of the requirements of the Act prepared by or approved by the Department of Labor (“DOL”) “posted, in a conspicuous place on the premises of the employer where notices to employees are customarily posted.” An employer may satisfy this requirement by emailing or mailing this notice to employees or by posting the notice on an employee information internal or external website. The DOL has made approved posters available here.
Although the Act indicates employers will be eligible for tax credits for providing paid sick leave and FMLA leave for COVID-19 related events on a quarterly basis, the IRS has since advised that employers may simply deduct the amounts paid (subject to statutory caps) from their payroll taxes. The result is that employers will receive the tax credits much sooner than initially anticipated. If an employer’s tax liability is less than the amount it paid for sick leave and FMLA leave, it is eligible for a refund. The IRS’s newly released tax credit guidance can be found here.
About the Author: Alden Thomas is an employment law attorney at Jaburg Wilk. She advises employers and employees on state and federal sick leave, harassment, discrimination, wage and hour, wrongful termination, and whistle blower laws