Earlier this evening, the IRS offered informal guidance in IR-2020-57 regarding its administration of the payroll tax credits enacted as part of the Families First Coronavirus Response Act (the “Act”) earlier this week. The Act mandates two forms of paid leave for employees of employers of 500 or fewer employees. Employers of more than 500 employees are neither subject to the Act’s paid leave requirements or eligible for the payroll tax credits provided under the bill.
Continue Reading IRS Offers Informal Guidance on New Paid Leave Tax Credits; More to Come Next Week
H.R. 6201
Paid Leave Measure Enacted in Response to COVID-19 Outbreak
By S. Michael Chittenden & Jack Lund on
Posted in Employment Taxes, IRS
UPDATE: President Trump signed the bill into law this evening.
This afternoon, the Senate voted 90-8 to approve the House-backed Families First Coronavirus Response Act. The legislation will provide up to ten weeks of paid FMLA leave and two weeks of paid sick leave to certain employees affected by COVID-19. Details on the legislation,…
House-Passed Coronavirus Relief Bill Leaves Many with More Questions than Answers
By Jack Lund & S. Michael Chittenden on
Posted in Employment Taxes, IRS
This weekend, the House of Representatives passed the Families First Coronavirus Response Act, a relief bill negotiated with the agencies and supported by the President. On Monday night, the House of Representatives substantively modified that bill in a follow-on resolution, H. Res. 904, referred to as technical corrections. Despite the changes, concerns have been expressed about potential gaps in the proposed legislation. Nonetheless, it is probable that legislation providing relief to at least some affected employees and employers will pass at some point in the not too distant future.
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Continue Reading House-Passed Coronavirus Relief Bill Leaves Many with More Questions than Answers