What is The Families First Coronavirus Response Act?

What is The Families First Coronavirus Response Act?

Families First Coronavirus Response Act

We hear a lot about how to prevent the spread of the Coronavirus, but we often miss out on the guidance of what to do when our lives are already being impacted by it. One Act that the government has passed to help with this is the Families First Coronavirus Response Act (FFCRA).

What is The Families First Coronavirus Response Act?

• New policy that requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19.

What does it include?

• Up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave based on the higher of their regular rate of pay, or the applicable state or Federal minimum wage, paid at:
  • 100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total;
  • 2/3 for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total; and
  • Up to 12 weeks of paid sick leave and expanded family and medical leave paid at 2/3 for qualifying reason #5 below for up to $200 daily and $12,000 total. A part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

Who is eligible?

• In general, employees of private sector employers with fewer than 500 employees, and certain public sector employers, are eligible for up to two weeks of fully or partially paid sick leave for COVID-19 related reasons.

What are the qualifying reasons?

• An employee is entitled to take leave related to COVID-19 if the employee is unable to work, including unable to telework, because the employee:
  • is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  • has been advised by a health care provider to self-quarantine related to COVID-19;
  • is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  • is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
  • is caring for his or her child whose school or place of care is closed (or child care provider is unavailable) due to COVID-19 related reasons; or
  • is experiencing any other substantially-similar condition specified by the U.S. Department of Health and Human Services.

With all the information about COVID-19 floating around, it can be hard to know what is accurate and what is applicable to you. If you have questions about how you can and should be utilizing these resources, please don’t hesitate to reach out to us at pwa@keatinginc.com.

Resources:

• DOL FAQs: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
• FFCRA Regulations – Unpublished Temporary Rule (Final Rule to be published 4/6/20): https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-07237.pdf

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. Content provided herein is based on our interpretation of the Care Act Stimulus and is not intended to be legal advice or provide a tax opinion. This document is a summary only and not meant to represent all provisions within the Care Act Stimulus.