The Internal Revenue Service (“IRS”) issued guidance on tax credits for employers who pay for leave required under the Families First Coronavirus Response Act (“FFCRA”). As part of this guidance, the IRS gave some detail on what records an employer should obtain from its employees who request paid leave under the FFCRA, stating in part as follows:
An Eligible Employer will substantiate eligibility for the sick leave or family leave credits if the employer receives a written request for such leave from the employee in which the employee provides:
- The employee’s name;
- The date or dates for which leave is requested;
- A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
- A statement that the employee is unable to work, including by means of telework, for such reason.
- In the case of a leave request based on a quarantine order or self-quarantine advice, the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.
In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include the name and age of the child (or children) to be cared for, the name of the school that has closed or place of care that is unavailable, and a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and, with respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care.
A complete text of the IRS guidance can be found at: https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs.
Employers should continue to monitor the situation and should update their FFCRA certification forms and procedures to ensure that they are properly handling leave requests and ensuring eligibility for corresponding tax credits.
Eric J. Holshouser
Samuel J. Horovitz
Robert G. Riegel, Jr.
Michael J. Lufkin
Kathryn K. Rudderman