What COVID-19 legislation means for businesses, nonprofits and their employees - Crawford Ellenbogen

On March 18, the Families First Coronavirus Response Act was
signed into law to provide American workers affected by the pandemic with
extended sick and family leave benefits.

The new law applies to your entity if you have
fewer than 500 employees, although you may be exempt if you have fewer than 50.
Here are some details.

3 things to know

There are three important components of the new law:

1. Paid sick leave. If a
staffer is ill, is instructed to be isolated by a physician or government
authority or is caring for a sick family member or child whose school has
closed, your organization must provide two weeks of paid leave. Pay part-time
workers based on their average hours over a two-week period. Benefits are
capped at $511 per day and $5,110 total for employees on leave because of their
own health issue, or $200 per day and $2,000 total to care for others.

2. Job-protected leave. You must
provide 12 weeks of job-protected leave for employees who need to take care of
a child due to the closure of a school or day care center. This provision
updates existing rules under the Family and Medical Leave Act. Employers are
now required to pay workers two-thirds of their regular wages, not to exceed
$200 per day and $10,000 total. You aren’t required to pay employees during the
first 10 days off; however, they may choose to use accrued time off benefits at
this time.

3. Employer payroll tax credits. To help
employers pay for time off, the law enables tax credits. You may claim a 100%
refundable payroll tax credit on wages associated with paid sick and medical
leave and other expenditures associated with health benefit contributions.
Additional wages paid to staffers due to the law’s leave requirement aren’t
subject to the employer portion of the payroll tax.

Unemployment assistance

Congress has also provided $1 billion in emergency grants
to states to process and pay unemployment insurance benefits. So if you need to
lay off staffers during the extended COVID-19 crisis, this provision can help
them manage the financial burden.

Of course, more is likely to be needed. Legislators are
currently working out a deal to provide furloughed and laid-off workers with
direct financial assistance as well as loans and other financial support for
employers. Keep your eye on the news.

Staying afloat

If you have questions about how the Families First Act applies
to you, please contact us..