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How do small and medium sized businesses provide paid sick and family leave for their workers?

The Families First Coronavirus Response Act (the “FFCRA”), signed on March 18, 2020, provides small and midsized employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.

Eligible employers can receive a credit in the full amount of the qualified sick leave and family leave wages paid for between April 1, 2020, and December 31, 2020.

Employers can be reimbursed immediately by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, employers may request an accelerated payment from the IRS.

For more detailed information, please visit the IRS.

Last updated January 21, 2021
Sources: U.S. Department of the Treasurylinks to external site, Internal Revenue Serviceslinks to external site

See also: Small business support