Emergency FMLA (FFCRA)
IRS Form 7200 for FFCRA FMLA leave.
The IRS has release the new form 7200 with its instructions for claiming the tax credit for FFCRA FMLA leave. The form and instructions can be found here. A helpful FAQ section on how this credit works is also available on the IRS website found here.
DOL issues new FAQ’s for employers
If you are an employer struggling to find out just how these new changes effect you please visit the Department of Labor website. They issued a new set of Frequently Asked Questions with their corresponding answers. The can be found here.
- How to track emergency paid sick leave and FMLA in iSolved walk through video (Approx 13 minutes)
- Tracking emergency sick leave and FMLA in iSolved walk through document
- FFCRA Required Labor Poster (must be posted and/or distributed by 4/1/2020)
Effective Date of Law
- The FMLA discussed below will go into effect on April 1, 2020 and expire December 31, 2020.
- It appears there is no retroactive application.
Key Elements for Employers
- FMLA expansion
- Paid sick leave
- Payroll tax credit
- Group health plan benefit mandate
Emergency FMLA Expansion
Covered Employers: Employers with fewer than 500 employees are covered.
Covered Employees: Any employee who has been employed for at least 30 calendar days, though employers may be able to exclude employees who are health care providers or emergency responders.
Covered Leave Purpose: To care for a child under 18 of an employee if the child’s school or place of care has been closed, or the childcare provider is unavailable, due to a public health emergency, defined as an emergency with respect to the coronavirus declared by a federal, state, or local authority.
- Up to 12 weeks of job-protected leave.
- No pay for first 10 days of leave (other paid time off, and emergency sick leave under the FFCRA, may be applied)
- After 10 days, employers must pay two thirds of the employee’s regular rate of pay for the number of hours they would normally be scheduled to work, capped at $200/day and $10,000 total.
Reinstatement to Position after Leave:
The same reinstatement provisions apply as under traditional FMLA. However, restoration to position does not apply to employers with fewer than 25 employees if certain conditions are met:
- The job no longer exists because of changes affecting employment caused by an economic downturn or other operating conditions that affect employment caused by a public health emergency;
- The employer makes reasonable efforts to return the employee to an equivalent position; and
- The employer makes efforts to contact a displaced employee if anything comes up within a year of when they would have returned to work.
Note: The act reserves the right for the Secretary to exclude certain care providers and first responders from the list of eligible employees and to exempt small businesses with fewer than 50 employees if business viability is jeopardized.