The Internal Revenue Service (“IRS”) issued extensive FAQs explaining how companies can receive tax credits for payments made under the Families First Coronavirus Response Act (“FFCRA”). The full FAQs can be accessed here . For more information regarding FFCRA, please refer to our prior e-alert regarding FFCRA and the Department of Labor’s FAQs (CLICK HERE) .
The IRS’s FAQs cover a wide variety of important issues relating to the FFCRA, among them:
- How to determine the amount of tax credits an employer would be entitled to claim for qualified sick leave pay and qualified family leave pay;
- How employers can apply for the tax credits, including the documentation employers must maintain to claim those credits;
- The eligibility periods for the tax credits;
- How tax credits under the FFCRA interact with other tax credits;
- Specific requirements for employers who use third-party payers for federal tax reporting;
- The treatment of paid leave for other employer-provided benefits (e.g., 401(k) plans);
- How employers should report tax credits received under the FFCRA;
- Special issues for employers and employees;
- Specific provisions relating to self-employed individuals.
Note that because the FAQs include important tax information, for more advice and recommendations on those points, please contact your tax professionals.
If you have any questions relating to this eAlert, or any other COVID-19 issue, please contact NFC’s COVID-19 Response Team as we are closely monitoring the rapidly changing legal landscape relating to this global pandemic. Please feel free to reach out to the NFC Attorney you typically work with or reach out to us directly.