As of December 31, employers are no longer required to provide employees with paid sick and family leave for COVID-related reasons, under the terms of the Families First Coronavirus Response Act, which was passed back in March. However, the federal budget that was passed late last month allows employers who wish to continue to offer that benefit to access tax credits through March 31.
On December 31, the U.S. Department of Labor issued an updated guidance that outlines the new parameters. You can also view this one-page guide that the DOL produced, which outlines how much paid leave employees are eligible for between now and March 31, should you choose to grant it.
With that said, two unanswered questions remain. First, it remains somewhat unclear at the time this Bulletin was published as to whether employees who utilized this paid leave tax credit would be eligible for the full credit amount through March 31, if they choose to offer additional paid leave. Please contact your tax advisor for information that is specifically applicable to your business.
Secondly, it remains to be seen whether the DOL under the incoming Biden administration will handle this rule in a different way than the outgoing Trump administration.Download Bulletin PDF