IRS Guidance on FFCRA Tax Credits

IRS Guidance on FFCRA Tax Credits

In this video from #Mattthelawyer YouTube channel, he explains the latest guidance on tax credits for the Families First Coronavirus Response Act (FFCRA). He gives the run down of how employers will be able to qualify for the tax credits. If you have fewer than 500 employees then you may qualify for a payment of employee wages if they take sick leave or the expanded FMLA leave.

In order to qualify you will need basic documentation: the employee’s name and dates they were on leave. You will also need a statement demonstrating one of the six reasons that the employee is taking leave (see below), and a statement that the employee is unable to work (including telework). If the reason leave is being taken is due to a quarantine order or self-isolation recommended by a medical professional, you should be including that evidence (i.e. doctor’s note with doctor’s name and practice) as well. If the leave is expanded FMLA, for example parents who are home taking care of their children because day care centers and/or schools are closed, you need to name the school or day care facility.

6 qualifying reasons for leave from the U.S. Department of Labor:

  1. “is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  2. has been advised by a health care provider to self-quarantine related to COVID-19;
  3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
  5. is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19; or
  6. is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.”