H.R. 6201 UPDATE: Based on new guidance from the Department of Labor (DOL), the FFCRA becomes effective on Wednesday, April 1, 2020. This date relieves many administrative burdens for calculation of the tax credit as no eligible leave will be contemplated during Q1 2020. Employers will be able to first claim the tax credit on its Q2 941 filing due July 31, 2020 for the period 4/1/2020-6/30/2020.
Loans Under Paycheck Protection Program (Section 1102) - Information Linked here
Section 1102 provides $350 billion for expedited individual loans up to $10 million through approved lenders that are guaranteed 100 percent by the U.S. government. The loan proceeds can be used to cover payroll support, such as employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments incurred from February 15, 2020, through June 30, 2020. The maximum amount of a loan equals 2.5 months of regular payroll expenses (subject to a cap of a $100,000 of annual salary per employee).
do you want to know if you are an exempt employer?
Are you a business with less than 50 EMployees?Contact us!
We are currently working with businesses to complete SBA, Bridge, and Payroll Protection Loan Applications! Please contact us for assistance from an experienced professional!
Employee Leave Benefits H.R. 6201
The bill provides new employee leave benefits, including instituting paid sick leave options for employees who work for employers with fewer than 500 employees.
Under the bill, eligible employees may take leave if the employee is unable to work (or telework) because they must care for a child (under 18 years of age) whose school or care provider is closed or unavailable due to a coronavirus emergency as declared by a Federal, State, or local authority.
For purposes of this leave, H.R. 6201 amends the FMLA definitions of covered employees and employers. Under H.R. 6201, eligible employees include those who work for employers with fewer than 500 employees and government employers who have been on the job for at least 30 days.
Paid Leave Rules H.R. 6201
First 10 Days of Leave: Under the bill, the first 10 days in which an employee takes emergency leave may be unpaid. An employee may elect, or an employer may require the employee, to substitute any accrued paid vacation leave, personal leave, or medical or sick leave for unpaid leave.
Paid Leave Rate for Subsequent Days: After 10 days of unpaid leave, an employer is required to provide paid leave at an amount not less than two-thirds of an employee’s regular rate of pay up to $200 per day or $10,000 in the aggregate.
The bill also addresses hourly employees whose schedules vary to the extent than an employer cannot determine the exact number of hours the employee would have worked. For those employees, the employee’s paid leave rate should equal the average number of hours that the employee was scheduled per day over the six-month period prior to the leave. If the employee did not work in the preceding six-month period, the paid leave rate should equal the “reasonable expectation” of the employee at the time of hiring with respect to the average number of hours per day that the employee would be scheduled to work.
Job Restoration: Generally, eligible employees who take emergency paid leave are entitled to be restored to the position they held when the leave commenced or to obtain an equivalent position with their employer. H.R. 6201 limits this rule for employers with fewer than 25 employees. In such circumstances, if an employee takes emergency leave, then the employer does not need to return the employee to their position if:
The position does not exist due to changes in the employer’s economic or operating condition that affect employment and were caused by the coronavirus emergency;
The employer makes “reasonable efforts” to restore the employee to an equivalent position; and
If these efforts fail, the employer makes an additional reasonable effort to contact the employee if an equivalent position becomes available. The “contact period” is the one-year window beginning on the earlier of (a) the date on which the employee no longer needs to take leave to care for the child or (b) 12 weeks after the employee’s paid leave commences.
EMERGENCY PAID SICK LEAVE H.R. 6201
The Emergency Paid Sick Leave Act is contained in Division E of H.R. 6201 and requires certain employers to provide employees with two weeks of paid sick time if the employee is unable to work (or telework) for the following coronavirus-related reasons:
The employee is subject to a Federal, State, or local quarantine or isolation order related to the coronavirus;
The employee has been advised by a health care provider to self-quarantine due to concerns related to the coronavirus;
The employee is experiencing symptoms of coronavirus and is seeking a medical diagnosis;
The employee is caring for an individual who is subject to a quarantine or isolation order or advised to self-quarantine by a health care provider;
The employee is caring for a child whose school or care provider is closed or unavailable due to coronavirus precautions; and
The employee is experiencing any other condition substantially similar to the coronavirus, as specified by the U.S. Department of Health and Human Services (HHS).
Paid Sick Time H.R. 6201
Paid Sick Time: Full-time employees are entitled to 80 hours of paid sick leave. Part-time employees are entitled to the number of hours that the employee works, on average, over a two-week period.
For hourly employees whose schedules vary, the employee’s paid leave rate should equal the average number of hours that the employee was scheduled per day over the six-month period prior to the leave. If the employee did not work in the preceding six-month period, the paid leave rate should equal the “reasonable expectation” of the employee at the time of hiring with respect to the average number of hours per day that the employee would be scheduled to work.
Once an employee’s coronavirus-related need for using the emergency paid sick leave ends, then the employer may terminate the paid sick time. Further, paid sick time provided under H.R. 6201 shall not carry over from one year to the next.
Paid Leave Rate: Employees who take paid sick leave because they are subject to a quarantine or isolation order, have been advised by a health care provider to self-quarantine, or are experiencing coronavirus symptoms and seeking medical diagnosis are entitled to be paid at their regular pay rate or at the federal, state or local minimum wage, whichever is greater. In these circumstances, the paid sick leave rate may not exceed $511 per day, or $5,110 in aggregate.
Employees who take paid sick leave to care for another individual or child or because they are experiencing another substantially similar illness (as specified by HHS) are entitled to be paid at two-thirds their regular rate. In these circumstances, the paid sick leave rate may not exceed $200 per day, or $2,000 in aggregate.
The legislation offers an additional 13 weeks — roughly three months — of unemployment insurance, funded by the federal government. The bill also gives an additional $600 a week for up to four months. This would be in addition to current jobless benefits offered by the states, which administer their own unemployment insurance programs.
Expanded benefits would last through December 2020.
How much unemployment will you get?
This depends on several factors, including your prior wages and the state in which you live.
States generally base payments on a worker’s prior four quarters of wages.
In January, state programs paid an average $385 weekly to unemployed workers, according to the Center on Budget and Policy Priorities.
To check with the CT Department of Labor or NY Department of Labor please go to our resources page!
Self-Employed FMLA Credits
Self-employed individuals who regularly carry on a trade or business within the meaning of Section 1402 of the IRC may claim sick leave and family leave credits similar to those afforded to employers under the Act, which credits may be used to offset income taxes imposed on them by Subtitle A of the IRC. To qualify for any such credit, a self-employed individual must be in a position to qualify for, as relevant, paid sick leave under the Emergency Paid Sick Leave Act or paid family leave under the Emergency Family and Medical Leave Expansion Act, if he or she were an employee of an employer (rather than being self-employed).
The CARES Act contains provisions that offer loan support to small businesses.
Some key provisions would:
Increase the government guarantee of loans made for the Payment Protection
Program under section 7(a) of the Small Business Act to 100% through December 31, 2020.
Define eligible businesses to include non-profits, sole proprietorships, self-employed individuals and firms with fewer than 500 employees per location.
White House and leaders of both parties in Congress in the early hours of Wednesday includes a big expansion of both the length and amount of unemployment insurance (UI) available. The deal even expands UI to cover gig workers, independent contractors and individuals who are self-employed.
Legislation that provides expanded unemployment compensation to self-employed people and workers in the gig economy is being finalized by Congress. Once it's approved, the details on how to apply and collect with be available..
Also currently there is help through the freelancers relief fund or self employment assistance fund Below!