Tax Credit for Emergency Sick Leave and Family Leave Paid by Employers Under the Families First Coro

The IRS has announced a plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses. Eligible employers can claim these credits based on qualifying leave they provide between April 1, 2020 and December 31, 2020. Small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.

Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child-care is unavailable in cases where the viability of the business is threatened.