We also know now that sick leave given to employees before April 1 will not satisfy or reduce the obligation under this new law and will not qualify for the tax credit. However, employers can start saving money now to cover the new cost on April 1. As explained in last week’s E-Alert, the federal government will reimburse employers for payment of EPSL and EFMLA as well as the costs to maintain health insurance coverage for eligible employees during the leave period.
To expedite the reimbursement, the Internal Revenue Service announced last Friday that employers could immediately start retaining payroll taxes they would otherwise deposit with the IRS, and use that money to cover the cost (dollar-for-dollar) of the new leave requirements. This means employers covered by the FFCRA may keep withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes from all employees to pay for these new requirements.
The FFCRA poster came out today, which may be emailed or direct mailed to remote employees, or posted on an employee information internal or external website.
The FFCRA implementing regulations will likely be released early next week. As the Department of Labor is formulating these rules, they are asking for employer input until March 29 via a website created to facilitate the dialogue or on the Twitter chat on March 25, 2020 at 2 p.m. ET (NOW!) using the hashtag #EPWChat. Remember: what a difference a day makes! Hang in there.
For questions regarding this guidance, contact Paula Barran or Charlotte Hodde at 503-228-0500, or at firstname.lastname@example.org or email@example.com. For additional content, including other Electronic Alerts, articles, and employer resources, visit www.barran.com.
Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice, but as employment law, labor law, and employee benefits announcements. If this has been forwarded to you, and you would like to begin receiving Electronic Alerts directly, please email or call Traci Ray at 503-276-2115. Copyright ©2020 by Barran Liebman LLP.
Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2020 por Barran Liebman LLP.