Important Updates to FFCRA Paid Leave Tax Credit Program
FFCRA Paid Leave Tax Credits Extended through Septemebr 30, 2021
The FFCRA paid leave tax credit program has been extended through September 30, 2021. New requirements apply to maintain eligibility.
Click here to download SWACCA's Updated FFCRA Paid Leave Guide
The Families First Coronavirus Response Act (FFCRA) mandated emergency paid leave for COVID-19 related reasons through December 31, 2021. Effective January 1, 2021 the mandate expired but the tax credit program remained available for employers who voluntarily provided emergency paid leave through March 31, 2021. The American Rescue Plan Act of 2021 (ARPA) now extends the tax credit reimbursement program through September 30, 2021. While employers’ participation in this program is voluntary, the leave must be offered pursuant to new rules to maintain eligibility for tax credit reimbursement. Important aspects of the new rules are:
- Employees may take 80 hours of Paid Sick Leave between April 1 and September 30, regardless of how much leave they took prior to April 1.
- Employees are eligible for Paid Sick Leave in three new and additional circumstances: 1) while waiting for results of a COVID-19 test/diagnosis, provided that they have been exposed or the employer has requested the test (even if the employee is not experiencing symptoms of COVID-19); 2) to obtain a COVID-19 vaccination; or 3) while recovering from complications related to the COVID-19 vaccination.
- Paid Family Leave is further expanded. The first ten days of Paid Family Leave are no longer unpaid, as was originally provided, and it is now available for all of the same reasons as paid sick leave. Additionally, the tax credit is available for covered wages up to $12,000, an increase from the prior amount of $10,000.
- Employers can now claim tax credits for contributions made to union apprenticeship and defined benefit plans for sick leave and paid FMLA hours.
SWACCA has updated its comprehensive guide to paid sick and family leave under the FFCRA and subsequent legislation. You can download it here.