Families First Coronavirus Response Act Summary

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Families First Coronavirus Response Act Summary

The Families First Coronavirus Response Act (FFCRA) includes mandatory employer-provided emergency sick pay and emergency paid family leave, as well as other provisions not related to the employment relationship such as free COVID-19 testing

  • A credit will be provided to employers to reimburse 100% of the qualified sick and leave wages as a credit against Employer Social Security Tax
  • The President signed the Act on March 19th, and the Act will be effective within 15 days, on a date determined by the Secretary of Treasury, and does not currently contain any retroactive applicability
  • The emergency sick pay and family leave requirements expire on 12/31/2020
  • Paylocity is developing tools to support these requirements, and will be prepared to handle these changes by the effective date. As of yet, the effective date is unknown, but will be April 2nd at the latest.
  • Congress is developing additional measures this week, which may include payments sent directly to taxpayers and bailouts for heavily-impacted industries.

SOURCE: Paylocity Article ID: PCTY-84561
By Debbie Sparks