Updated April 4, 2020

Effective April 1, the Families First Coronavirus Response Act (FFCRA or Act) requires certain private sector employers with fewer than 500 employees and governmental employers of all sizes to provide their employees with emergency paid sick leave and emergency paid medical leave. More information about the FFCRA is available here.

Given the current unknowns, many employers are evaluating the financial implications of the Act’s expansive mandatory paid leave and making difficult decisions, including reducing head count.

To incentivize employers (in particular, those deemed essential under various shelter orders) to retain their employees and bear the costs of emergency paid leave, the FFCRA offers covered employers a refundable payroll tax credit. This tax credit offsets the cost of the paid leaves required under the Act, and could make all the difference for certain businesses concerned that the cost of these paid leaves will run them out of business. Here’s how it works.Continue Reading FFCRA payroll tax credits: Here’s how it works