Consolidated Appropriations Act Update: Paid Family and Medical Leave
The Consolidated Appropriations Act (CAA) provides relief to eligible employers by extending the credit for paid sick and family leave originally part of the Families First Coronavirus Response Act is now extended to March 31, 2021.
Employers with fewer than 500 employees are allowed to claim refundable credits against the employers portion of the Social Security Tax (6.2%) for each calendar quarter, equal to:
100% of the qualified sick leave wages paid by the employer for that calendar quarter,
100% of the qualified family leave wages paid by the employer with respect to that calendar quarter
Equivalent credits are available to self-employed individuals based on similar circumstances.
Employee with Covid-19 symptoms or quarantined, and seeking a medical diagnosis:
Employee: may receive up to 80 hours of paid sick leave at 100% of the employee's pay.
Employer: may receive a credit for sick leave at employee’s regular pay, up to $511 per day and $5,110 in the aggregate, for up to 80 hours.
Employee caring for an individual or child whose school/childcare provider is closed for reasons related to COVID-19:
Employee: may receive up to 80 hours of paid sick leave at 2/3 the employee's pay.
Employer: may receive a credit for 2/3 of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 80 hours.
Employee who is unable to work due to a need to care for a child whose school is closed, or childcare provider is unavailable for reasons related to COVID-19:
Employee: may receive up to an additional 10 weeks of expanded paid family and medical leave at 2/3 the employee's pay.’
Employer: may receive a credit for 2/3 of the employee's regular rate of pay, up to $200 per day and $10,000 in total.
IMPORTANT NOTE: It is important to note that the same wages cannot be counted both the employee retention credit and the credits above and PPP expenses.
To learn more, contact Jason Brewer, jbrewer@smcpafirm.com, 248-649-1600.
