The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020. The law takes effect on April 2, 2020 and will provide paid sick and family leave during the COVID-19 pandemic. Two key components of the FFCRA are 1) Emergency FMLA and 2) Emergency Paid Sick Leave. Tax credits are being offered by the IRS to offset these additional costs to nonprofit organizations.
Emergency Family & Medical Leave Expansion
Any employee who has been employed with the nonprofit for at least 30 calendar days is considered eligible. Eligible employees may take up to 12 weeks of job protected leave due to
- The employee being unable to work (and/or not be offered telework options),
- The employee is required to care for their son or daughter (under 18 years of age) where the place of care has been closed, or the childcare provider is unavailable.
Emergency Paid Sick Leave
Paid sick leave is available to employees who are unable to work or telework because:
- The employee is quarantined or isolated by Federal, State or local order;
- The employee is advised to self-quarantine by order of a health care professional;
- The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
- The employee is caring for an individual subject to quarantine or isolation by Federal, State or local order or by order of a health care professional (akin to #1 and #2 above);
- The employee is caring for a child because the child’s school or childcare facility is closed; or
- The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of Treasury and Secretary of Labor.
The IRS will provide tax credits for both Emergency FMLA and Emergency Paid Sick Leave. In addition, nonprofits are entitled to an additional tax credit based on costs to maintain health insurance coverage for the eligible employee during the leave period. A summary of the caps are as follows:
- Emergency FMLA: Up to $200/day or $10,000 in aggregate
- Emergency Paid Sick Leave:
- Up to $511/day or $5,110 in aggregate
- Up to $200/day or $2,000 in aggregate
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