Government Issues A New Round of Employment Laws

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The government issues a round of employment laws. As a result, US employers will be impacted by several new laws amid the COVID-19 outbreak!

Here are the key takeaways on the employment laws every employer must be aware of,

Paid Leave – Three types

  1. Up to 80 hours: For sick or quarantined (according to federal/state/local government order or doctor’s advice), or
  2. Up to 80 hours: to care for a family member who is ill or quarantined, or to care for a child if school/child care is closed, and
  3. Additional ten weeks to care for a child if school/child care is closed. 

Payroll Credits in correspondence:

  1. the regular rate of pay, up to $511 per day, for up to 10 days
  2. 2/3 of the daily rate of pay, up to $200 per day, for up to 10 days.
  3. 2/3 of the regular rate of pay, up to $200 per day, for up to 10 weeks

Employee Size Requirement:

  1. Employers with fewer than 50 employees may be eligible for an exemption from the requirements to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern.
  2. Employers with more than 500 employees are exempt from the elements.

Fast Funds:

  1. Employers 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 them with the IRS.
  2. If the payroll tax is not able to cover the cost, employers will be able to file a streamlined claim form that will be released next week.

Compliance and Filing Procedures:

  1. The credits will be reported on quarterly payroll form 941
  2. Still waiting for IRS to release more details.

Useful Links:

US DOL Family First Coronavirus Response Act:

  1. Extended tax filing and payment deadline: http://www.mytaxfiler.com/blog/the-irs-and-treasury-extend-the-filing-tax-deadline-and-federal-tax-payments/
  2. Sick leave and payroll tax credit: http://www.mytaxfiler.com/blog/government-issues-a-new-round-of-employment-laws/
  3. SBA loan for affected businesses: http://www.mytaxfiler.com/blog/everything-you-need-to-know-about-covid-19-sba-disaster-loans/
  4. List of things C-19 impacted individuals and businesses should know:  http://www.mytaxfiler.com/blog/heres-how-the-us-and-private-sectors-aid-to-overcome-the-covid-19-situation/
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