A recently signed Federal stimulus bill allows for employers with 500 or fewer employees to voluntarily participate in the extension of the Emergency Paid Sick Leave (EPSL) and Expanded Family Medical Leave Act (EFMLA) under the Families First Coronavirus Response Act (FFCRA) through March 31, 2021. Under the new law, employers are not required to continue providing paid leave, but may voluntarily choose to continue providing the FFCRA’s EPSL or EFMLA starting on January 1 through March 31, 2021.

Employers who were covered by the FFCRA in 2020, and who voluntarily choose to continue providing the above paid leaves can continue to claim a tax credit to cover the entire cost of voluntarily providing the above FFCRA paid leaves through March 31, 2021, plus the employer’s portion of its Medicare tax.

Each qualified employee is entitled to a total of 2 weeks (80 hours) of (EPSL) and an additional 10 weeks of (EFMLA) from the time the FFCRA was initially enacted in April 2020 through the end of March 2021.

Consultation with qualified legal counsel is advised for questions regarding your particular circumstances to voluntarily continue to provide these benefits, and/or who is eligible for such benefits. Consultation with your accountant or CPA is also advised regarding the tax credits available on such wages.

IRS Frequently Asked Questions: https://link.calstrawberry.com/0cg