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FFCRA for Small Business Owners

FFCRA for Small Business Owners

The FFCRA was expanded under the new stimulus package after originally ending in 2020. If you’re a small business owner, you may benefit from these credits. 

Here’s what you need to know about the FFCRA updates: 

  • Paid leave for COVID reasons has been extended through March 31, 2021. 

  • The FFCRA paid leave is now optional. You can still receive tax credits on your 941 for any of those wages paid through the first quarter.

  • This is a continuation of the same bank of hours. That means that employees have a total of 80 hours to use. For example, if you had an employee who used 40 hours in 2020, they would only be eligible for 40 more hours in 2021.

  • There is no tax credit for the public sector. The tax credit is only available for private employers.  

  • If employers choose to continue then the same rules from the original FFCRA will apply. 

Who’s eligible: 

  • Private sector employers with less than 500 employees

  • If you choose to extend FFCRA, make sure you offer it to everyone equally according to original FFCRA guidelines.

What it is: 

  • Up to 80 hours of paid sick leave and an additional 10 weeks of childcare.

Payroll tax credit:

  • Applies to both emergency sick leave and expanded FMLA

  • Refund possible for wages paid that exceed  available payroll taxes paid.

  • Dollar for dollar credit measured against your quarterly payroll taxes.

Payment breakdowns: 

  • An employee who must be quarantined and cannot work: full pay capped at $511 per day

  • Employee has been advised to self quarantine: full pay capped at $511 per day

  • Employee has COVID-19 symptoms and is seeking medical diagnosis: full pay capped at $511 per day

  • Employee is caring for a sick or quarantined person: ⅔ regular pay capped at $200 per day

  • Employee caring for a child whose school or daycare is closed: ⅔ regular pay capped at $200 per day

For even more details on the FFCRA and how it can help your small business, watch a short (less than 10 minutes) training video here

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