On April 1, the Families First Coronavirus Response Act (FFCRA) became effective, requiring almost all businesses—including small businesses with fewer than 500 employees—to provide emergency sick leave and expanded FMLA leave to employees affected by the novel-coronavirus pandemic.
Seth Perretta and Malcolm Slee, Partners at Groom Law Group, shared updates on the FFCRA in an April 1 webinar hosted by G&A Partners. The following clip from the webinar offers FFCRA highlights and discusses the federal tax credit employers can use to offset some of the additional costs incurred.
“That tax credit [should be] equal to the amount of the paid leave that is required to be provided,” Perretta says. “Your financial exposure on the paid leave is fully recompensed—at least as to the paid-leave wage amount—by the refundable tax credit that is delivered to you as a refund or a credit against [your] share of the Social Security tax.”
Watch the webinar clip below to learn more.