IRS Issues Tax Credit Guidance for Employers
The Families First Coronavirus Response Act (FFCRA), signed by President Trump on March 18, 2020, provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
The FFCRA gives businesses with fewer than 500 employees funds to provide employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members. Yesterday the IRS issued guidance via a Q&A to provide much-needed clarification for employers on accessing these tax credits.