Paid Sick Leave for Workers Required for COVID 19The Emergency Family and Medical Leave Act, part of the CARES act, was passed into legislation March 18th, 2020, provides employers with less than 500 employees to provide up to 80 hours of paid sick leave (at 100% of the employee's pay) to employees who are sick, quarantined, experiencing symptoms or seeking a diagnosis related to COVID 19. Note, there are exemptions for employers with less than 50 employees. An employee who is unable to work because of a need to care for an individual subject to quarantine, care for a child whose school or child care provider are unavailable due to COVID 19, are also eligible for up to 80 hours of paid sick leave (at 2/3rd of the employee's pay).
The Act also created a refundable payroll tax credit for employers who are required to provide paid sick leave under the act. The credit for paid sick leave is 100% of the employee's pay, up to $511 per day or $5,110 in the aggregate, for a total of 10 days. For an employee caring for someone with the coronavirus, or caring for a child whose school or child care is closed due to coronavirus, the credit is available for up to 2/3rds of the employee's pay, up to $200 per day or $2,000 in the aggregate, for up to 10 days.
The employer who pays qualifying sick or child care leave can retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, subject to the above mentioned limitations, rather than deposit them with the IRS. If there are not sufficient payroll taxes to cover the cost of the qualified sick and child care leave paid, employers will be able to request an accelerated payment from the IRS.
Emergency Family and Medical Leave Expansion ActSimilar to the Sick Leave Act, this act requires employers with fewer than 500 employees to provide both paid and unpaid public health emergency leave to employees through December 31, 2020. The emergency leave is available to employees who have been employed for at least 30 days, but is unable to work due to a need for leave to care for a son or daughter under age 18 because a school or place of care has been closed, or childcare provider is unavailable due to an emergency with respect to COVID-19 that is declared by a federal, state or local authority.
The first ten days of leave may be unpaid and then paid leave (not less than 2/3rds the employee's regular rate) is required. The leave is based on the number of hours the employee would otherwise be normally scheduled to work, but not to exceed $200 per day and $10,000 in total. The credit is taken in a similar fashion as the Paid Sick Leave credits mentioned above.
Small Business Admin Loans - Payroll Protection Program Covered loans guaranteed under 7(a)(36) of the SBA, are eligible to be forgiven at the end of an 8 week period, starting on the date of the loan origination date, if proceeds were used for eligible costs (Payroll, mortgage interest, rent, and utilities).
The eligible amount available for a covered loan is based upon 250% of the employer's average monthly payroll cost during the twelve months prior to application. The portion eligible to be forgiven is equal to the amount of proceeds used for eligible costs as mentioned above.