June 22, 2021
On June 11, 2021, the IRS released new FAQs about tax credits for eligible employers who voluntarily provide paid employee leave under the Families First Coronavirus Response Act (FFCRA). The FFCRA paid sick and family leave requirements themselves expired December 31, 2020, but subsequent legislation, most recently the American Rescue Plan Act (ARP), extended and enhanced the tax credits available for employers that choose to provide FFCRA leave taken by employees through September 30, 2021.
There are 123 new FAQs, divided into 16 subtopics. The FAQs include information on how employers may file for and compute the applicable credit amounts and how to receive advance payments for and refunds of the credits. They clarify the following issues, among others:
NOTE: The tax credits apply to employers with fewer than 500 employees (and certain governmental employers without regard to the number of employees) and are refundable and advanceable. Wages are subject to daily and total limits.
For additional information, please contact your Burnham Consultant or Burnham, A Baldwin Risk Partner at 949‐833‐2983 or email@example.com.
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