Wyatt Employment Law Report

Employer Tax Credits For Emergency COVID-19 Leave Available Immediately

By Meredith L. Eason

Under the Families First Coronavirus Response Act, the federal government will immediately reimburse small and midsized businesses and nonprofit organizations for the costs they incur providing emergency sick leave or emergency FMLA leave to their employees.   Employers can immediately take a dollar for dollar credit against their payroll taxes to reimburse themselves for the cost of paying for this leave.  If the amount an employer pays out under the program exceeds its payroll tax obligation, employers can immediately file for a refund.  The refunds will be expedited and processed within two weeks.  The refund forms should be available over the next few days.  The leave must be provided between April 1, 2020 through December 31, 2020 to qualify.  Equivalent credits are available to self-employed individuals who become ill or need to take time away from work to care for a family member.  More information is available here.

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