IRS Paid Leave Tax Credits for COVID-19

paid sick leave

The impact of the COVID-19 pandemic has continued to be felt by people all over the country. In some cases, the pandemic has made it challenging for people to continue to work. To provide support with this, the Families First Coronavirus Response Act (FFCRA) and the COVID-related Tax Relief Act of 2020 were passed to ensure people had access to financial resources and Paid Leave Tax Credits if they were not able to work.

Access to Paid Sick Leave

The recently approved acts have provided benefits to employees all over the country by providing up to 80 hours of fully paid sick leave. The paid sick leave can pertain to a direct illness or if you are required to provide care for others. As this provides a significant burden from employers, the FFCRA has also provided businesses with fewer than 500 employees with tax credits and benefits that can help to offset the additional expense that results from the expanded sick leave. There are similar benefits also available to self-employed people that were not able to work as a result of COVID-related illnesses.

Situations Covered

When hiring an employment lawyer New Jersey employees will have more guidance in determining whether they qualify for the additional sick leave. The employment attorneys in NJ will point out the variety of situations that would qualify for this support under the COVID-19 rules. Some of the common situations that would qualify for this coverage include the following:

  • The employee has tested positive for COVID-19 and is expected to quarantine for a period of time following the diagnosis.
  • The employee has not tested positive but has been around other people that have tested positive and there is a risk of transmission.
  • The employee is the caregiver for a child that either has tested positive for COVID-19, is enrolled in a school that has been closed down for precautionary reasons, or if the regular childcare provider is not available due to COVID-19.
  • The employee is experiencing symptoms of COVID-19 and would like to quarantine for safety purposes.

If the employee is still able to work remotely during this time, they may not qualify for the additional paid sick time off. However, anyone that cannot work from home, or is too ill to work should qualify.

Total Sick Leave Compensation

The sick leave compensation will vary based on each person’s individual situation. If you hire an employment attorney New Jersey employees will learn more about what they are entitled to based on their situation. If employees are directly sick themselves and have been forced to quarantine, you can receive up to 80 hours of paid sick leave. This is based on your full hourly compensation with a daily cap of $511, or $5,110 in total.

If an employee is unable to work because they are caring for someone else that is ill, their compensation can be lowered. Employees in these situations can receive up to two-thirds of their hourly rate with a daily paid sick leave cap of $200, or $2,000 across an 80-hour period. State and federal minimum wage laws could increase this amount in some situations. When hiring an employment lawyer New Jersey residents can learn if their compensation should be altered based on state guidelines.

If you are not able to work due to the COVID-19 pandemic and are not receiving the support that you are entitled to, it would be a good idea to seek legal support and representation. When working with employment lawyers New Jersey residents will learn more about their protections and whether they were entitled to the paid sick leave. When looking for employment lawyers New Jersey employees should speak with Ashton E. Thomas. When working with Ashton E. Thomas, you can learn a lot more about this unique law and receive all the legal support to ensure you are properly reimbursed and that your rights are represented.