Authored by: Dean R. Dietrich
Several questions have come up regarding compliance with the Families First Coronavirus Response Act.
First, questions have been raised as to which employees are covered under the Act and whether there are exemptions from coverage which would mean those employees would not be eligible for the emergency paid sick leave or the extended family/medical leave. Generally, any employee that meets the identified conditions for either the emergency paid sick leave or the extended family/medical leave would be eligible for the benefit. This applies to any business that has fewer than 500 employees. There are exemptions for public sector employers relating to those employees that would be considered “healthcare providers” or “emergency responders” who would not be eligible for receiving emergency paid sick leave. An emergency responder is defined very broadly as an employee who is necessary for the provision of transport, care, healthcare, comfort, and nutrition of patients, or whose services are otherwise needed to limit the spread of the Coronavirus. There is a long list of public sector employees that would be exempt from receiving these two different leave benefits including police officers, firefighters, emergency medical technicians, paramedics, public works personnel, and persons with special skills and training in operating specialized equipment. Thus, public sector employers can exercise discretion over which employees are eligible for the extended benefits.
The second question that has come up concerns the payroll tax credit that employers are eligible to receive if they provide emergency paid sick leave or expanded family/medical leave under the new law. Employers are allowed to deduct amounts from their social security payroll tax for qualified wages paid from April 2, 2020 through December 31, 2020. This applies if the employer provides a paid benefit to employees. We are attaching an article from another law firm that provides general background information regarding the payroll tax credit relief that can be obtained under this new emergency leave law. Click here to view the article: Lexology - Employers Receive Payroll Tax Credit.pdf
We will continue to monitor this situation and provide more background information as needed.
