Thursday, March 26, 2020

DOL FFCRA Field Assistance Bulletin (important footnote about payment schedule)

DOL guidance for the FFCRA continues to roll in, including this Field Assistance Bulletin No. 2020-1. The main point of the bulletin is that DOL will not bring enforcement actions in the first 30 days after enactment (i.e. through April 17, 2020) if the employer made "reasonable, good faith" efforts. Employers may escape enforcement actions if they:
1. Remedy violations;
2. The violations were not willful;
3. Provide a written commitment to abide by the law to DOL. 
That said, the highlight of the bulletin may be buried in a footnote (fn3)!
For purposes of this non-enforcement policy, employers who are eligible for tax credits but who have insufficient cash flow should make payment of sick leave or family leave wages as soon as possible, but not later than seven 7 calendar days after the employer has withdrawn an amount equal to the required paid sick leave and expanded family and medical leave wages from the employer’s Federal payroll tax deposits or, to the extent such deposits are not sufficient, has received a refund of the credit amount from the IRS to cover the required wages.
Could be a huge relief for some employers.

HT: Amanda Baer on Twitter

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