Tax Credits for Voluntarily Providing Leave Temporarily Extended
The U.S. Department of Labor’s Wage and Hour Division (WHD) announced additional guidance to provide information about protections and relief offered by the Families First Coronavirus Response Act (FFCRA). The FFCRA’s paid sick leave and expanded family and medical leave requirements expired on December 31, 2020.
The new guidance, in the form of Frequently Asked Questions (see questions 104 & 105) on the WHD website, addresses whether workers who did not use their leave entitlement under the FFCRA in 2020 may use such leave after December 31, 2020. It also explains how WHD will maintain its enforcement authority over employers’ leave responsibilities while the FFCRA’s paid leave requirements were in effect, even after these leave entitlements have expired.
Additionally, the Consolidated Appropriations Act (CAA), 2021, extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021. However, the CAA did not extend employees’ entitlement to FFCRA leave beyond December 31, 2020, meaning employers will no longer be legally required to provide such leave. IRS has not updated its guidance yet, but existing guidance on the eligible tax credits can be found here.
WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked and job-protected leave under the FMLA at https://www.dol.gov/agencies/whd/pandemic. For AGC-provided resources on FFCRA and other coronavirus-related matters of significance to construction employers, visit AGC’s coronavirus website.
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.