The mandated FFCRA (Families First Coronavirus Response Act) Pay is set to expire on December 31, 2020. Employers can voluntarily provide this pay and receive a tax credit through March 31, 2021. When deciding if you are going to allow some employees to receive this, make sure you are using the same measuring tool as to mitigate discrimination, whether perceived or real. This is another win for employers.
I will keep you updated as more information becomes available.
Here are the details, so far:
The current version of the bill, which is expected to be called for a vote this evening, results in the following:
Mandated FFCRA Leave ends on December 31, 2020
As of January 1, 2021, covered employers may voluntarily provide emergency paid sick leave or emergency paid FMLA Leave under FFCRA (as adopted earlier this year) and take the tax credit associated with this leave.
The tax credit may only be taken for leave through March 31, 2021.
In other words, FFCRA leave is no longer required, but if covered employers voluntarily provide these leave benefits through March 31, 2021, they are eligible to take the tax credit for the leave.