On Friday, March 20, two days after enactment of the Families First Coronavirus Response Act (“FFCRA”), the U.S. Department of Treasury, Internal Revenue Service and U.S. Department of Labor jointly issued a news release announcing a plan to implement the two new forms of paid leave for employees under the FFCRA and corresponding payroll tax credits for eligible employers. Though the release leaves questions unanswered, it does provide further details about the employer tax credits, including how to immediately receive full reimbursement for leave payments. With further regulatory guidance expected this week, the situation requires continued monitoring. In the interim, here is a link to the March 20 news release:
https://www.dol.gov/newsroom/releases/osec/osec20200320
Stay tuned for further clarification as it becomes available on the procedure for obtaining the tax credits and the administration of the two new forms of paid leave.
___________
