On December 22, 2020, both the United States House and the Senate passed the Coronavirus Response and Relief Supplemental Appropriations Act. This bill will extend FFCRA leave benefits for eligible employers who choose to offer the leave until March 31, 2021.
Here’s what employers need to know:
As of January 01, 2021, eligible employers are no longer mandated to provide FFCRA leave to eligible employees. However, employers can choose to continue to offer FFCRA leave to eligible employees and will receive tax credits through March 31, 2021.
Even though eligible employers aren’t required to offer FFCRA leave, employers should remain vigilant to continue to comply with the anti-retaliation and recordkeeping provisions under the FFCRA. This means employers may not base any employment decisions or take action against an employee in the form of disciplining, terminating, or discriminating against an employee for taking leave or invoking their rights under the FFCRA.
We understand this can be extremely confusing to employers. Trüpp anticipates additional information from the Department of Labor in the coming days to clarify requirements for employers subject to FFCRA.
Other critical elements of the Coronavirus Response and Relief Supplemental Appropriations Act that is important for employers to know:
The employee retention tax credit has been extended for eligible employers through July 01, 2021, and is increased from 50 percent of qualified wages to 70 percent. The per-employee limitation of $10,000 for all calendar quarters is now a per calendar quarter limit.
The Act includes more than $284 billion in Paycheck Protection Program (PPP) loans for eligible organizations, including previous PPP loan recipients.