During this time of uncertainty, you can count on RBN to be there for you. In addition to securing insurance programs, RBN is a resource for you and your organization for compliance and regulatory updates.

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

On March 18, 2020, the Families First Coronavirus Response Act (FFCRA) was signed into law. FFCRA applies to employers with less than 500 employees. Small businesses with fewer than 50 employees may qualify for exemption if the leave requirements would jeopardize the viability of the business. FFCRA is expected to go into effect in the next few weeks and run until December 31, 2020.

FFCRA Family and Medical Leave Summary

FFCRA requires employers to provide their employees with expanded family and medical leave benefits for reasons related to COVID-19. For complete language and additional information, please visit the U.S. DOL website.

  • Two weeks (up to 80 hours) of family and medical leave at regular pay, up to $511/day and $5,110 total, if the employee is unable to work because the employee is quarantined, experiencing COVID-19 symptoms, and/or seeking a medical diagnosis.
  • Two weeks (up to 80 hours) of family and medical leave at two-thirds regular pay, up to $200/day and $2,000 total, if the employee is unable to work because of needing to care for an individual subject to quarantine, to care for a child whose school or child care provider is closed for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.
  • Up to an additional ten weeks of expanded family and medical leave at two-thirds regular pay, up to $200/day and $2,000 total, if an employee, who has been employed for at least 30 calendar days, is unable to work because of needing to care for a child whose school or child care provider is closed for reasons related to COVID-19.

FFCRA Tax Credits Summary

There are two new payroll tax credits to reimburse employers for the cost of providing coronavirus-related leave to their employees. For complete language and more information, visit the IRS website.

  • Paid Sick Leave Credit: Eligible employers may receive a credit for sick leave at the employee’s regular rate of pay, up to $511/day and $5,110 total, for a total of 10 days. For an employee who is caring for someone with coronavirus, or is caring for a child, eligible employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200/day and $2,000 total, for up to 10 days. Eligible employers are entitled to an additional tax credit based on costs to maintain health insurance coverage for the eligible employee during the leave period.
  • Child Care Leave Credit: Eligible employers may receive a child care leave credit equal to two-thirds of the employee’s regular pay, capped at $200/day or $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit based on costs to maintain health insurance coverage for the eligible employee during the leave period.

RBN IS HERE TO HELP

During this time of uncertainty, you can count on RBN to be there for you. In addition to securing insurance programs, RBN is a resource for you and your organization for compliance and regulatory updates. We will continue to monitor the situation and provide updates as necessary. As always, reach out to us with any questions or concerns.

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