Q: How will I receive credit for Sick and Family Medical Leave payments made to employees under H.R.6201 – Families First Coronavirus Response Act?


A: Effective April 2, 2020, employers will receive credits for 100% of payment made under the Act. An immediate dollar-for-dollar tax offset against payroll taxes will be provided. 

Under guidance expected to be released this week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit that amount with the IRS. If there are not sufficient payroll taxes to cover the cost of qualified sick and childcare leave paid, employers may file a request for an accelerated payment from the IRS. 

Please click the link below for additional information.
IRS Guidance on Coronavirus Paid Leave Tax Credits

If you have any questions or would like additional information, please contact your Liberty Advisor.



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