Families First Coronavirus Response Act
Federal Relief Legislation
Phase 2 | Families First Coronavirus Response Act
This Federal legislation, signed into law on March 18, 2020, addresses the coronavirus (COVID-19) outbreak by providing paid sick and family leave for employees and refundable tax credits for employers, as well as free COVID-19 testing; expanding food assistance and unemployment benefits; and increasing Medicaid funding.
Employee Paid Leave Rights
The Families First Coronavirus Response Act requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s Wage and Hour Division administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31, 2020. [read more]
Employer Paid Leave Requirements
The Families First Coronavirus Response Act requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s Wage and Hour Division administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31, 2020. [read more]
U.S. Department of Labor Questions & Answers
The Families First Coronavirus Response Act provides paid sick leave and expanded family and medical leave for COVID-19-related reasons and creates the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. See IR-2020-57 for additional information.
The tax credits for qualified sick leave wages and qualified family leave wages required to be paid by the Families First Coronavirus Response Act will apply to wages paid for the period beginning on April 1, 2020 and ending on December 31, 2020. [Notice 2020-21]
To take advantage of the payroll tax credits, employees can retain the funds they would otherwise pay in payroll taxes. If those amounts aren’t sufficient, employers will be able to request an accelerated payment from the IRS by submitting a streamlined claim form that has not yet been released. The IRS anticipates processing these requests in two weeks or less.
IRS: COVID-19- Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
*The IRS updated these FAQs on April 17, 2020.
COVID-19 Response Team
Please contact a member of our coronavirus (COVID-19) response team at if you have any questions about Federal, state and local relief measures or require assistance assessing how these measures can benefit your business. Our nearly 100-member team of CPAs and accountants is ready to help your business with its financial, accounting and tax needs during these extraordinary times.
Serving You During the Coronavirus Crisis
As the situation with coronovirus (COVID-19) evolves, we want to reassure you that your Tronconi Segarra & Associates team is ready and standing by to support you.
This website has been prepared for general guidance on matters of interest only; it does not constitute professional advice. You should not act upon the information contained in this website without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy of completeness of the information contained in this publication; and, to the extent permitted by law, Tronconi Segarra & Associates LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this website or for any decision based on it.
Copyright 2020 Tronconi Segarra & Associates. All rights reserved.