IRS and (More) DOL Guidance on COVID-19

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Patricia Tsipras

March 23, 2020

On Friday, March 20, 2020, the Internal Revenue Service (IRS) issued a News Release regarding the tax credits available for small and midsized businesses to recover the cost of providing Coronavirus-related leave.  The key takeaways, as identified by the IRS, are:

• Employers receive 100% reimbursement for paid leave pursuant to the Families First Coronavirus Response Act.
• Reimbursement will be quick and easy to obtain.
• Employers with fewer than 50 employees are eligible for an exemption from the requirement to provide leave to care for a child whose school is closed, or child care is unavailable, in cases whether the viability of the business is threatened.
• The requirements of the Act are subject to 30-day non-enforcement period for good faith compliance efforts.

Also on Friday, the Department of Labor issued the following guidance regarding the Families First Coronavirus Response Act, which essentially outlines the Act in non-legalese (see our article here regarding the Act):

• Families First Coronavirus Response Act: Employee Expanded Family and Medical Leave Rights
• Families First Coronavirus Response Act: Employer Expanded Family and Medical Leave Requirements

Call or email us if you need assistance in interpreting this guidance or to address questions regarding COVID-19 in your workplace