FFCRA - Here's What Employers Must Know!
Last modified 6/18/2020 8:14:47 AM EST | Added by Paywow Team

The Families First Coronavirus Response Act (FFCRA) was enacted to the law in response to the novel coronavirus, aka COVID-19. The primary intent of this law is that employers with fewer than 500 employees must provide emergency paid sick and family medical leave to employees as a result of the COVID-19 pandemic.

The FFCRA act is inclusive of these things:

• Emergency Paid Sick Leave
• Emergency Family and Medical Leave Act Expansion

Emergency Paid sick Leave

This benefit explains that if the employee is unable to work due to COVID-19, or taking care of a family member who is under quarantine, they must be provided with two weeks (up to 80 hrs) of paid leave either at their regular rate of pay or minimum wage rate. To learn more about this policy and create one for your business, click here.

Emergency Family and Medical Leave Act

The FFCRA has made amendments to the family and medical leave act. Employees who are employed for over 30 working days and caring for a child whose daycare is not operational are eligible to take on this benefit. Under this act, employers provide up to 12 weeks of leave (first ten days are unpaid and remaining ten weeks are paid) to their employees who are taking care of their children if their daycare has been closed due to the COVID-19 pandemic. To learn more about this policy and create one for your business, click here. 

Tax Credits

Under this law, the employers will also receive tax credits to cover up the additional costs paid to employees as wages. These credits will be added to the employer's Social Security and Medicare taxes and Health Insurance. 

Are there any exemptions?

Yes, small businesses with less than 50 employees may be exempt from this law so that it doesn't jeopardize the ongoing of their business.