Updated 12/29/2020

Congress voted in favor and President Trump signed off on a stimulus package that includes the continuation of tax credits for employers offering paid leave to employees impacted by COVID-19 using Families First Coronavirus Response Act (FFCRA) framework. While it includes an extension of the tax credit, it does not include an extension of the mandate, meaning offering the leave is now voluntary for employers.

As a reminder, FFCRA provides paid leave to qualified employees who miss work due to COVID-19 and provides reimbursable tax credits to qualifying employers who provide that leave, but that law is set to expire on December 31, 2020.

Once additional guidance comes out from the DOL and IRS, we will provide updates.

As a reminder, FFCRA provides paid leave to qualified employees who miss work due to COVID-19 and provides reimbursable tax credits to qualifying employers who provide that leave, but that law is set to expire on December 31, 2020.

Here is what we understand from the bill in its current state:

  • Employers who voluntarily choose to continue to offer FFCRA leave to qualified employees can continue to claim tax credits through March 31, 2021. Clients of Helpside will continue to follow the same process for employees requesting leave related to COVID-19. Continuing to offer paid leave to employees who qualify may help employers ensure that employee exposed or infected with COVID-19 stay home.
  • There is not an additional amount of leave eligible for tax credits. In other words, if an employee has already used their 80 hours of emergency paid sick leave under FFCRA, the employer would not be able to claim an additional tax credit if an employee needs additional leave.

Even though government-funded FFCRA leave is expected to be available until March 31, 2021, we still recommend you do the following as you prepare for 2021. As additional guidance comes out from the DOL and IRS, we will provide updates.

Review your paid leave policy
Take a look at your PTO and sick leave polices and determine if these need to be changed in light of COVID-19. If you are able, you may consider adding additional paid (or unpaid) leave to cover situations where employees may need to be out due to COVID-19 exposure after they have exhausted their FFCRA paid leave.

Reconsider possible work from home options
While this is not feasible in every environment, it may be worth reconsidering what work might be able to be done from home. This will allow employees who are quarantining due to exposure to continue to work and earn income.

Don’t forget about state and local laws
Over the past nine months, many state and local governments enacted paid leave laws associated with COVID-19. Some of these include Colorado, New Jersey, Oregon, the District of Columbia and several cities in California (Emeryville, Long Beach, Los Angeles, Oakland, Sacramento, San Diego, San Francisco, San Jose, San Mateo, and Santa Rosa). Some of these state and local laws also expire December 31, 2020, but others do not.

Communicate your expectations regarding COVID-19 safety
Communicate often about the company’s commitment to keeping employees healthy. Encourage employees to stay home if they have been exposed to or diagnosed with COVID-19. Current CDC guidelines state that employees should quarantine for 10 days after the date of exposure or sign of first symptoms, or seven days after a negative test result (with the test taken five days after the onset of symptoms).

Make it clear that you expect employees to notify their supervisor if they have been exposed or diagnosed with COVID-19 and that they should not return to the workplace until they have completed the quarantine period as advised by CDC. Communicate to employees that unsafe practices regarding COVID-19 will result in disciplinary action.

If you have questions about FFCRA or adjusting your paid and unpaid leave policies for 2021, please reach out to the Helpside HR Team at humanresources@helpside.com