The IRS and DOL issued joint guidance today enabling small and midsize employers to begin taking advantage of two new refundable payroll tax credits which are designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act.

You can access the joint guidance here and we have summarized it for you below. If you have any questions related to the Families First Coronavirus Response Act, the joint guidance or any other issues arising from the current COVID-19 emergency, please contact Amalie Tuffin at atuffin@hutchlaw.com or Ashley Pittman at apittman@hutchlaw.com.

Complete Coverage for Emergency and FMLA Paid Sick Leave for Workers.
Under the Act, employers with under 500 (other than those employers with fewer than 50 employees who qualify for an exemption) are required to pay up to 80 hours of paid sick leave for COVID-19 related issues and provide expanded paid childcare leave under FMLA when employees’ children’s schools are closed or childcare providers are unavailable.

Under the joint guidance:

Easing Compliance
The agencies provided that requirements of the Act are subject to a 30-day non-enforcement period for good faith compliance efforts.

Health and Retirement Plans

More Guidance Expected
We anticipate more guidance coming from Federal and State agencies in the coming days and weeks in response to the Act and other COVID-19 related legislation and rules, including the exemption from the Act for employers with fewer than 50 employees.


Look for more Client Alerts from us as circumstances warrant.

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