Client Alert: FFCRA Leave Ends December 31, But Employers Providing Such Leave Voluntarily to Employees May Continue to Take Tax Credits

• The current FFCRA required leave ends on December 31, 2020.
• As of January 1, 2021, covered employers may provide leave under the FFCRA (emergency paid sick leave or emergency paid FMLA Leave) and take the tax credit associated with the FFCRA leave.
• The tax credit only applies for leave through March 31, 2021.

The new legislation therefore no longer requires employers to provide FFCRA leave, but if an employer chooses to provide those leave benefits through the sunset on March 31, 2021, they are entitled to take the tax credit for the leave. It appears the new legislation does not re-set the leave period. Therefore, if an employee has already taken the full amount of FFCRA to which they are entitled, they would not be entitled to additional leave under the FFCRA, and the employer would not be entitled to additional tax credits. The limit to the leave and the corresponding tax credit remains the same, it is only the time period during which such leave may be taken that is extended.

If you have questions about this guidance or its impact on your business, please contact Jennifer Weaver or your Manning Fulton relationship attorney.