My HR Professionals is keeping our clients up-to-date with all of the changing regulations concerning COVID-19. We will continue to keep up-to-date information on this page. Still we are available to answer questions via phone or email. For our Human Resource Administration Service clients, this comes at no additional charge.
Updated: March 26, 2021
Last updated 3/26/2021
Employer Credit for Paid Sick Leave and Family Leave (FFCRA): The Families First Coronavirus Response Act (FFCRA) mandatory leave expired 12/31/2020 but became Optional for eligible employers effective January 1st, 2021.
ARPA expands the scope of the refundable payroll tax credits for emergency paid sick leave and expanded family leave (EPSL and EFMLA), enacted in the Families First Coronavirus Response Act (FFCRA), for leaves taken through September 30th, 2021.
Highlights of the provision:
- The EPSL bank of 80 hours and EFMLA bank of 12 weeks of leave resets on April 1, 2021. For example, someone who exhausted their 80 hours will have a new bank of 80 hours available to use effective April 1st.
- ARPA mandates an employer cannot claim credits if paid leave favors highly compensated employees, full-time employees, or that discriminates based on how long employees have worked for the employer.
- Three additional qualifying reasons that pay at 100% of the employee’s daily wages (up to a maximum of $511 per day) have been added to include when the employee is:
- Getting a COVID-19 vaccine.
- Recovering from complications due to receiving the vaccine.
- Awaiting test results or diagnosis (clarification from previous relief bills).
- ARPA expands the EFMLA to allow for use for all the qualifying reasons for which EPSL leave may be used, which include the new reasons listed above.
- For EFMLA the 10-day unpaid waiting period has been eliminated, meaning the entire 12 weeks of EFMLA is paid.
- The EFMLA rate of pay continues to be 2/3 of the employee’s daily regular wages, up to $200 per day (regardless of the reason for the leave).
- For an employer to claim the available tax credits, the employer is required to comply with all the obligations that were previously set forth in the FFCRA regarding the payment of EPSL and EPFL, job protection and restoration, and non-retaliation.
We will publish updates on our COVID-19 Resource page if the IRS and/or DOL provides guidance.
Next Steps for My HR Professionals Clients:
- If an employer decides to continue offering this paid leave, have eligible employees continue to complete the ‘Leave Submission Form’ found within our COVID-19 resource page- https://myhrprofessionals.com/covid-19/. This form has been updated to reflect information according to the ARPA. Upon receiving this form, your payroll processor will continue to confirm with you the approval of the leave prior to processing payroll and will notify you if there are no available hours to take in 2021.
- If you have a time & attendance account with My HR Professionals-
- The EPSL and EFMLA paid time options will remain active, and balances will reset effective April 1st. This means employees who have previously used this leave will show with no hours used under the various hour banks on April 1st.