Expanded Family and Medical Leave Act benefits

The federal government expanded Family and Medical Leave Act (FMLA) benefits to employees who are unable to work due to the COVID-19 crisis.

  • Employees sick or quarantined due to COVID-19ย can receive up to two weeks (80 hours) of paid leave at 100% of their salary. The employer will receive a payroll tax credit for that paid leave, up to $511 per day, for a total of 10 days.
  • Employees caregiving for someone impacted by COVID-19ย can receive up to two weeks (80 hours) of paid leave. The employer must pay the employee two-thirds of the personโ€™s regular pay. The employer will receive a payroll tax credit for two-thirds of the employeeโ€™s wages, up to $200 per day for a total of 10 days. Employees who have worked for the employer for at least 30 days may also receive an additional 10 weeks of paid leave if theyโ€™re unable to work because their childโ€™s school or child care provider is closed or unavailable.

“We WILL get through this together.”ย 

The payroll tax credit can be claimed quarterly. For self-employed people, there will be a tax credit equal to the sick leave amount.

This applies to businesses with less than 500 employees. However, small businesses with fewer than 50 employees may qualify for an exemption if leave requirements would jeopardize the business.

You can learn more about the expanded paid leave rules in the Department of Laborโ€™sย Fact Sheet for Employers.

Incentives for maintaining payroll

Businesses will get a tax credit for keeping idle workers on their payrolls during the coronavirus pandemic. The tax credit will be worth half of what the company spent on wages, up to $5,000 per worker.

To qualify, the business must prove they took a 50 percent loss compared to the same quarter in years past. However, employers wonโ€™t be able to get special SBA loans if they accept this tax credit.

Further reading:ย The Paycheck Protection Program (A Simple Guide)

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