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COVID-Related Paid Sick Leave Employer Tax Credit Extended to March 31, 2021

We have previously provided information on the Families First Coronavirus Relief Act (FFCRA) passed by Congress last March. While the FFCRA, effective April 1, 2020, expired by its own terms on December 31, 2020, one aspect of the act has been extended.

Under the FFCRA, employers were required to provide employees with up to 10 days (or 80 hours) of paid sick leave for qualifying COVID-related reasons. Employers paying such sick leave were then permitted to take a quarterly dollar-for-dollar payroll tax credit. Though the paid sick leave requirement has expired with the FFCRA and employers are no longer required to provide paid sick leave, the U.S. Department of Labor has clarified that employers may voluntarily decide to provide such leave to any employees who have not already exhausted their entitlement under the FFCRA. Following the Department of Labor announcement, Congress’s Consolidated Appropriations Act of 2021 extended the employer tax credit for paid sick leave/expanded family and medical leave voluntarily provided to employees until March 31, 2021.

If you have any questions concerning the FFCRA, voluntarily-paid COVID-related sick leave, or any other employment related matter, please contact Frank Laws (FLaws@tandllaw.com), Sima Fried (SFried@tandllaw.com), or Jennifer Ciarrocchi (JCiarrocchi@tandllaw.com).

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