March 27, 2020 - Douglas Myser

Virus bill has tax credits for employers. The Coronavirus relief bill signed by President Trump late Wednesday, among its many provisions, several tax credits for employers who provide paid sick leave or family or medical leave for their employees who miss work for various coronavirus related reasons. The Families First Coronavirus Response Act, H.R. 6201, passed the House of Representatives on Monday by unanimous consent and passed the Senate Wednesday by a vote of 90-8. Some of the IRS tax credit provisions, include: Payroll tax credit for required paid family leave. Subject to certain limitations, the bill provides an employer payroll tax credit that equals 100% of the qualified family leave wages paid by the employer under the portion of the bill known as the Emergency Family and Medical Leave Expansion Ace (division C of the bill). The Emergency Family and Medical Leave Expansion Act requires employers with fewer than 500 employers to provide public health emergency leave under the Family and Medical Leave Act, P.L. 103-3, when an employee is unable to work or telework due to a need to care for a son or daughter under age 18 because the school or place of care has been closed, or the child care provider is unavailable, due to a public health emergency related to COVID-19. Virus bill has tax credits for employers.

The credit is available for eligible wages paid during a period that begins on a date starting within 15 days of enactment and through Dec. 31. 2020. The credit would apply against the employer portion of Sec. 3111(a) old age, survivors, and disability insurance (OASDI) taxes or Sec. 3221(a) Tier 1 Railroad Retirement Act excise taxes. The credit is generally available for up to $200 in wages per employee would be eligible for the credit. The amount of the credit is increased by the amount of the Sec. 3111(b) Medicare tax imposed on the qualified family leave wages for which credit is allowed.

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