THIS SHOULD NOT BE CONSIDERED LEGAL ADVICE IN A PARTICULAR SITUATION OR PARTICULAR SET OF FACTS. NEITHER WILL IT COVER THE ENTIRE RECENT LEGISLATION. YOU MAY CAN USE THIS SUMMARY FOR GENERAL FAMILIARIZATION AND THEN CONSULT AN EMPLOYMENT LAW ATTORNEY AND TAX ADVISOR, AS APPROPRIATE FOR YOUR PARTICULAR QUESTIONS.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Act “the Act”) This law provides many things including supplemental appropriations for Food and Nutrition Service including Supplemental Nutrition Program for Women, Infants and Children. Defense Health Program, Veterans, IRS and school lunch waivers and waivers of fees for COVID-19 testing. It includes the Emergency Family and Medical Leave Act, which expands the Family and Medical Leave Act of 1993. This is through December 31, 2020 and there are caps on leave and amount to be paid. For small business, it expands the 1993 act to businesses with “fewer than 500 employees”. It provides unpaid leave for initial 10 days, which can be substituted for vacation, personal leave and medical or sick leave. After 10 days, it provides paid leave for each day of leave after 10 days. It provides calculation as to defining days and the calculation of the “regular rate of pay”. An employee’s notice of leave, when practicable, is to be given. Employers are to make reasonable efforts to restore the employee to an equivalent position held when leave commenced. There also is the Emergency Paid Sick Leave Act. For employees with COVID-19 or who were advised to self-quarantine or isolation, or seeking a medical diagnosis or who are caring for person self-quarantine for caring for a son or daughter whose school is closed due to COVID-19 precautions, the employee is entitled to paid sick leave for 80 hours (full time) or the hours the employee works on the average (part-time). Employers also must post notices in the work place of the employee’s rights under this Act and employers may not discharge the employee who takes leave permitted by the Act. A failure to do these things is a violation of the Fair Labor Standards Act of 1938 (29 U.S.C. 206, 215 and 217) and subject to penalties under the FLSA.
Employers are allowed credits (not deductions) against taxes imposed by the Internal Revenue Code §3111(a) and 3221(a in an amount equal to 100% of the qualified sick leave paid by the employer in that quarter. The amount is increased by a credit allowed by so much of the employer’s qualified health plan expenses attributable to qualified sick leave wages. Eligible self-employed persons are allowed a credit against tax imposed by subtitle A of the Internal Revenue Code for any taxable year in an amount equal to the qualified sick leave equivalent amount with respect to the individual. There is a credit for Family Leave for Self-employed individuals who are entitled to receive paid leave if the individual were an employee of an employer. All wages required to e paid by reason of these acts shall not be considered wages for the purposes of the Internal Revenue Code §3111(a) or § 3221(a0
On March 18, 2020, President Trump signed into law the Families First Coronavirus Act “the Act”) This law provides many things including supplemental appropriations for Food and Nutrition Service including Supplemental Nutrition Program for Women, Infants and Children. Defense Health Program, Veterans, IRS and school lunch waivers and waivers of fees for COVID-19 testing. It includes the Emergency Family and Medical Leave Act, which expands the Family and Medical Leave Act of 1993. This is through December 31, 2020 and there are caps on leave and amount to be paid. For small business, it expands the 1993 act to businesses with “fewer than 500 employees”. It provides unpaid leave for initial 10 days, which can be substituted for vacation, personal leave and medical or sick leave. After 10 days, it provides paid leave for each day of leave after 10 days. It provides calculation as to defining days and the calculation of the “regular rate of pay”. An employee’s notice of leave, when practicable, is to be given. Employers are to make reasonable efforts to restore the employee to an equivalent position held when leave commenced. There also is the Emergency Paid Sick Leave Act. For employees with COVID-19 or who were advised to self-quarantine or isolation, or seeking a medical diagnosis or who are caring for person self-quarantine for caring for a son or daughter whose school is closed due to COVID-19 precautions, the employee is entitled to paid sick leave for 80 hours (full time) or the hours the employee works on the average (part-time). Employers also must post notices in the work place of the employee’s rights under this Act and employers may not discharge the employee who takes leave permitted by the Act. A failure to do these things is a violation of the Fair Labor Standards Act of 1938 (29 U.S.C. 206, 215 and 217) and subject to penalties under the FLSA.
Employers are allowed credits (not deductions) against taxes imposed by the Internal Revenue Code §3111(a) and 3221(a in an amount equal to 100% of the qualified sick leave paid by the employer in that quarter. The amount is increased by a credit allowed by so much of the employer’s qualified health plan expenses attributable to qualified sick leave wages. Eligible self-employed persons are allowed a credit against tax imposed by subtitle A of the Internal Revenue Code for any taxable year in an amount equal to the qualified sick leave equivalent amount with respect to the individual. There is a credit for Family Leave for Self-employed individuals who are entitled to receive paid leave if the individual were an employee of an employer. All wages required to e paid by reason of these acts shall not be considered wages for the purposes of the Internal Revenue Code §3111(a) or § 3221(a0
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