Summary of the Mandatory Medical & Sick Leave
Part of the response to the current Coronavirus situation was the enactment earlier this week of provisions requiring most small and medium-sized employers to provide mandatory, paid medical and sick leave.
These provisions have a broad impact and will affect virtually every employer in the country who has less than 500 employees.
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.
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.