IRS Updates FAQs on Tax Credits for Required Paid Leave
Originally published by the following source: SBC Magazine — April 2, 2020
by Jess Lohse
The Families First Coronavirus Response Act (FFCRA), signed by President Trump on March 18, 2020, provides small and midsize (under 500) employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
On March 31, the IRS published an extensive overview and Frequently Asked Questions (FAQs) list addressing many common questions employers have regarding the FFCRA, determining various amounts of tax credits, allocable qualified health plan expenses, how to claim credits, and more. The sixty-plus FAQs go into significant detail and offer a great tool to help understand the various requirements the FFCRA places on businesses.