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The FFCRA - Helping both employees and employers during COVID

With the spate of mandatory quarantines and other restrictions forcing many in the workforce to take a leave of absence, it’s small wonder businesses are being pressed financially - something that can help both employers and employees is making use of the Families First Coronavirus Response Act (FFRCA).


How the Act can help you as an employee:


● Up to 80 hours of paid leave (whether to take care of others or for personal health needs)

● Up to 10 weeks of paid family leave (to care for a child that is unable to be looked after by school, care center, etc.)


How the Act can help you as a business-owner:


The above paid leaves, which are mandated, can pose a difficulty to companies already struggling; fortunately, the FFRCA allows them to be applied as tax credits, specifically for:

● Qualified sick and family leave wages

● Qualified health plan expenses that can be allocated to employee leave wages, and

● Employer’s portion of Medicare tax on qualified wages.


The IRS has a comprehensive list of answers to some commonly-asked questions regarding the Act (such as ‘who are the eligible employees?’ ‘how can I claim the credits?’ ‘how does it apply to self-employed individuals?’, etc.).

You can check it out here: https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs



Need more answers to your specific, personal situation? Talk to one of the tax and financial planning experts at Landmark Tax Services - they specialize in all things tax-related. Find out what they can do for you today.

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