U.S. Senate Passes House’s Emergency Coronavirus Bill. What is the Impact on Employers?

Covad 19 Map

From ADP

  • This morning (3/20/2020), The U.S. Department of Treasury moved Tax Day from April 15th to July 15th – no interest and no penalties for filing!
  • On March 18, 2020 the U.S. Senate passed the revised US House of Representatives’ Families First Coronavirus Response Act (H.R. 6201). The bill now heads to President Trump’s desk where changes could be made, but it is expected to be signed.  The bill applies to employers with fewer than 500 employees, and employees who have been working for the employer for at least 30 calendar days. The following is a summary of some of the highlights that will affect these employers:
    • 12 weeks of job-protected paid FMLA.
    • Employees may use accrued PTO during the first 14 days, but employers may require employees to do so.
    • Employees may use the leave for required or recommended quarantines for themselves, to care for family members, or to care for a child under 18 whose school or daycare has been closed as a result of COVID-19
    • Following the first 14 days of leave, employers must compensate employees by at least 2/3 of the employees’ regular rate of pay with a $200 per day cap and $10,000 max.
    • Emergency Paid Sick Leave
      • Employers must provide full time employees with 80 hours of paid sick leave for circumstances related to COVID 19.
      • Part time employees are entitled to the number of paid sick time equal to the number of hours they work over an average 2-week period
      • Paid sick time must be at the regular rate of pay with a cap of $511 per day per employee and $5,110 max.
      • Employers must post notices of Employee’s leave rights.
      • These provisions will be effective 15 days after enactment and expire December 31, 2020.
To alleviate some of the financial burden, the bill provides for a limited refundable employment tax credit equal to the amount that an employer pays to an employee under this provision, i.e., up to $511, or $200 respectively, to a maximum of ten days per employee for the year.

 

Link to the bill : https://urldefense.proofpoint.com/v2/url?u=https-3A__www.congress.gov_bill_116th-2Dcongress_house-2Dbill_6201&d=DwIFAg&c=xu_5lAfKHjInGFR3ndoZrw&r=54cDyNm9KpPEi3OWgxPQ59nsbOpHfNL7BtA_5vlcFRk&m=qizw6VgHj7vFWlHqOpe9DGvu67_ZaQT5Tfd2z0AO2z8&s=QIzPnLluccXUARU7RHT32O-VZgjn_-gDYRwHwYCfRpI&e=

 

In the meantime, if you want some more updates, feel free to sign up for ADP’s free Accountant Connect website.  Gives you real-time 24/7 updates from the IRS and tips coming from Wolters Kluwer.  https://www.adp.com/who-we-serve/by-partner/accountants/accountant-connect.aspx