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.).
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.