What Employers Need to Know

Despite that fact that the FFCRA’s leave provisions were not extended into 2021, the Consolidated Appropriations Act, 2021 relief package extends the FFCRA tax credit, which reimburses employers for the cost of providing FFCRA leave, through March 31, 2021. As a result, beginning on January 1, 2021, employers are no longer required to provide FFCRA leave; however, covered employers who voluntarily offer such leave may utilize payroll tax credits to cover the cost of benefits paid to employees through the end of March. The relief package does not change the qualifying reasons for which employees may take leave, the caps on the amount of pay employees are entitled to receive, or the FFCRA’s documentation requirements.

The law also does not change the amount of leave that employees are entitled to take under the FFCRA. Under the FFCRA, full time employees are entitled to a one-time allotment of 80 hours of paid sick leave and 12 weeks of expanded family medical leave. Therefore, an employer is not entitled to a second tax credit for an employee taking leave in 2021, when that employee already took leave in 2020. However, if an employer allows an employee to take a second period of expanded FMLA leave because the employer’s calendar year has reset. For example, because the employer uses the “calendar year” under its FMLA policy, the employer may be able to claim a tax credit for the second round of expanded FMLA benefits paid to the employee in 2021.

Qualifying Reasons for Which Employees May Take Leave

Covered employees may use this emergency paid sick leave for the following reasons, to the extent they are unable to work or telework during the period in question:
  1. if they are subject to a federal, state, or local quarantine or isolation order related to the Coronavirus;
  2. if they have been advised by a heath care provider to self-quarantine due to concerns related to the Coronavirus;
  3. if they are experiencing symptoms of the Coronavirus and are seeking a medical diagnosis;
  4. if they are caring for an individual who is subject to a federal, state, or local quarantine or isolation order related to the Coronavirus, or who has been advised by a heath care provider to self-quarantine due to concerns related to the Coronavirus;
  5. if the employee is caring for their son or daughter if the school or place of care of the son or daughter has been closed, or their child care provider is unavailable, due to Coronavirus precautions; and/or
  6. if they are experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

FFCRA’s Documentation Requirements

Questions?

We’re here to answer them. If you have questions or specific situations you would like to discuss, please contact Lori Reich at (320) 214-2906.