The U.S. House of Representative passed the Families First Coronavirus Act (the “Bill”) to provide relief for families affected by the COVID19.  The Bill requires certain employers to provide emergency family and medical leave and provides a new business tax credit and relief provisions to these employers.  The Bill is subject to the Senates’ vote and President Trump’s approval.  Here are some key provisions contained in the Bill:

• Expanded Emergency Family and Medical Leave is provided to employees of an employer with fewer than 500 employees. The qualifying employees have the right to take up to 12 weeks of job-protected leave for the quarantine instructions due to COVID19, to care of an at-risk family member who is following an quarantine requirement or recommendation, or to care for a child whose school or place of care has been closed.  The qualifying employees are entitled to two weeks of paid leave, and 2/3 of usual pay during the remaining 12 weeks.

• Temporary Federal Emergency Paid Sick Leave Benefit provides two weeks of paid sick leave for qualifying employees of an employer with fewer than 500 employees. The benefit is provided to the qualifying employees to quarantine or seek a diagnosis or preventative care of COVID19.  The benefit is reduced to 2/3 of the employee’s regular pay if the leave is to care for a effected family member or to care for a chile whose school or place of care has been closed.

• New Business Tax Credit is provided for amount equal to 100% of qualified sick leave wages paid by employers with fewer than 500 employees. The credit is allowed against the employer portion of social security payroll taxes.  The credit is limited to a daily amount and number of days in quarter limitations.

• Refundable Business Payroll Tax Credit is provided for required paid family leave. The credit is equal to 100% of qualified family leave wages paid by the qualifying employer with fewer than 500 employees.  The credit capped at $200 per day for each effected employee and $11,000 for each quarter.

Additional detail will be provided in the H.R. 6201.  https://www.congress.gov/bill/116th-congress/house-bill/6201/text

Additionally, Congressional leaders are discussing options to stimulate economic effects of COVID19.  Some of the key stimulus measures in discussion include the suspension of certain payroll taxes, including employer’s share of 6.2% Social Security tax and 1.45% Medicare tax through the remainder of 2020; introduction of employer tax credit for hiring or retaining employees; allowing 2020 net operating loss carryback and removing the 80% taxable income limitation.

We will continually monitor the legislature developments and apprise you when additional information is available.