Wednesday, April 1, 2020

New IRS guidance on claiming FFCRA tax credits

Sick of all of the DOL updates? Well, now you can head on over to the IRS website instead for some new guidance: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs. That's not all! The IRS has an entire Coronavirus Tax Relief page, with news releases, FAQs, guidance, and more. There is way too much information for me to try to distill down to a blog post. That said, the number one question I'm getting on the tax credit front is: as an employer, what documentation do I need (similarly, what must an employee provide)?

See Question 44:
44. What information should an Eligible Employer receive from an employee and maintain to substantiate eligibility for the sick leave or family leave credits?

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:  

1.  The employee’s name; 
2. The date or dates for which leave is requested; 
3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and 
4. 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.
Again, dive into the full FAQs for some great information. Also, I think we are supposed to see FFCRA regs from DOL later today, so check back soon!

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