Details about Paid Leave for Employers and Employees
Employers’ obligations begin on April 2, 2020.
There are different paid leave types because of COVID-19. Payments are based on the reasons that the employees are unable to work. The mandatory paid leave amount varies based on the type of paid leave taken and based on the reason the employee is unable to work.
Under the Families First Coronavirus Response Act, employers will be eligible for tax credits against FICA based on the amounts of mandatory sick leave paid.
Self-employed individuals who are unable to work because of the COVID-19 emergency will also receive credits against the Self Employment Contributions Act (SECA) contributions. If a self-employed individual is also an employee of another employer, the individual cannot double-dip.
We will continue to follow these developments and will provide additional information as we receive clarification. These are very challenging times.
Please know that LB Goodman is here to help you with your financial questions and concerns. If you have any questions, do not hesitate to contact us.