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Effective April 1st, the U.S. Department of Labor (DOL) issued temporary regulations for the Families First Coronavirus Response Act (the “FFCRA”) that outlined the requirements for employees giving notice and the supporting documentation required.
The FFCRA provides employers with fewer than 500 employees funds, in the form of refundable tax credits, to reimburse them for the cost of providing employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members.
Up to two weeks of paid sick leave is available to qualifying employees. An additional 10 weeks of partially paid expanded family and medical leave is available to some employees when their children’s school or place of child care is closed.
To request leave, an employee is not required to provide a note from a health care provider. However, an employee requesting leave must notify their employer as soon as possible, and provide a signed statement containing:
- The employee’s name or the name of child being cared for.
- The date(s) for which leave is requested.
- The coronavirus-qualifying reason for leave.
- A statement that the employee can’t work or telework because of this reason.
- The name of the government entity or health care provider that issued the quarantine or isolation order to which the employee is subject.
An employee requesting expanded medical and family leave must also provide:
- The name of the school, place of care or child care provider that closed or became unavailable due to coronavirus reasons.
- A statement representing that no other suitable person is available nor will any other person provide care for the child during the period of requested leave.
- A statement that special circumstances exist requiring the employee to provide care, if the leave is to care for a child older than 14 during daylight hours.
To claim tax credits, the IRS issued guidance stating that eligible employers claiming tax credits for qualified leave wages must substantiate their claims by retaining records related to and supporting each employee’s leave. Employers must also retain:
- Documentation to show how the employer determined the amount of qualified sick- and family-leave wages paid to employees.
- Documentation to show how the employer determined the amount of qualified health plan expenses that it allocated to wages.
- Form 941, Employer’s Quarterly Federal Tax Return.
- Form 7200, Advance of Employer Credits Due to COVID-19.
- Any other applicable filings made to the IRS requesting the credit.
For more information, please click here to view the Temporary Rules on the US DOL Wage and Hour Division website and also check out the Families First Coronavirus Response Act: Questions and Answers.
As we are learning to navigate through these times of uncertainty and adjusting to our new normal, we here are at The Foresight Companies want to be your go-to source for all topics related to your business operations.
Please visit our COVID-19 new Business Operations Resource Center frequently as we continue to update as changes are occurring.
If you have any questions or concerns please do not hesitate to pick up the phone and give one of us a call at 1-800-426-0165.
*Please note that as information is updated and modified, terms and conditions are subject to change.