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Families First Coronavirus Response Act not extended, tax credits may still be available

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Families First Coronavirus Response Act not extended, tax credits may still be available

Congress declined to extend the Families First Coronavirus Response Act (FFCRA) in the second stimulus package to address the COVID-19 pandemic. The FFCRA expired on December 31, 2020 which required employers with fewer than 500 employees to provide paid sick leave and expanded family and medical leave.

Employers are no longer required to provide paid leave under the Act, but payroll tax credits are still available to employers that voluntarily provide leave under the FFCRA. If an employer provides leave for FFCRA-eligible reasons and pays employees per specified FFCRA rates, tax credits are available until March 31, 2021.

The California Labor Commissioner has also updated California’s COVID-19 supplemental paid sick leave program to reflect its expiration as well. However, employers should monitor any new developments as the state Legislature may enact new leave policies related to COVID-19.

Furthermore, employers need to be aware of the rules and expiration of local County and City ordinances that were enacted last year to provide supplemental paid sick leave related to COVID-19 as these may not directly align with state or federal provisions.

Chase Law Group can help you understand what ordinances apply to your business and provide guidance on employment laws. As with all tax and payroll related matters, please have a qualified CPA and/or payroll service provider assist you. We’re happy to provide referrals if you need one.

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