Treasury Issues Tax Credit FAQs
The U.S. Department of Labor today announced new action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA). The department鈥檚 Wage and Hour Division (WHD) posted a issuing regulations pursuant to this new law, effective today, April 1, 2020.
The Internal Revenue Service (IRS) also issued 鈥鈥. FFCRA provides small and midsize employers refundable tax credits that reimburse them for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
WHD will also post a recorded on Friday, April 3, 2020, to provide interested parties a more in-depth description and help them learn more about the FFCRA.
WHD offers a number of compliance assistance materials to explain FFCRA鈥檚 benefits and requirements. Tools include a and a , available in both English and Spanish, and an expansive list of addressing the questions WHD has most frequently received from stakeholders to date. Available guidance also includes two new posters, one and , available in both English and Spanish, that will fulfill notice requirements for employers obligated to inform employees about their rights under this new law, about posting requirements, and describing WHD鈥檚 30-day non-enforcement policy.
WHD provides additional information on common issues employers and employees face when responding to COVID-19 and its effects on wages and hours worked under the Fair Labor Standards Act and job-protected leave under the Family and Medical Leave Act at .
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.