Summary of the Mandatory Medical & Sick Leave (Updated 4-20-2020)
We previously issued guidance on March 21, 2020 to help employers navigate these new and far-reaching provisions of the Family Medical Leave and Paid Sick Leave. Subsequently, the Department of Labor and IRS have issued several pronouncements that answered many questions and provided clarification.
Rules for the implementation of these provisions continue to evolve. Many unanswered questions remain, and these provisions can and will change. We have updated our guidance for these new developments and we will continue to provide updated guidance.
In summary, the new legislation does the following:
- Expands mandatory Family Medical Leave Act (FMLA) coverage in specified circumstances (“qualifying events”).
- Mandates employer-paid emergency sick leave for employees in specified circumstances (“qualifying events”).
- Provides tax credits to reimburse employers for paid Family Medical Leave and paid Emergency Sick Leave wages, as well as health insurance premiums.
- Provides tax credits for self-employed persons who require Family Medical Leave or Sick Leave in specified circumstances.
- *Update *Applies to employers with less than 500 employees. Rules exist for determining the number of employees and potential exemptions apply to lower employment numbers.
- *Update*These provisions become effective for leave starting April 1, 2020, and remain in effect until December 31, 2020. Leave taken prior to April 1, 2020 are not covered by these provisions and are subject to the employer’s existing leave policy.
The good news is these provisions provide relief to many who are being drastically impacted by the current crisis. In addition, the costs will be paid by the federal government and not by business. The bad news is that employers will be faced with the burden of administration.
We have prepared a detailed analysis which provides more insight, which is available at this link:
There are many unanswered questions relating to implementation. Given the broad impact, we wanted to get this initial information in front of you.
Please contact your Kirsch CPA Group at (513)858-6040 to continue the discussion.