EMERGENCY FAMILY AND MEDICAL LEAVE
EMERGENCY PAID SICK LEAVE
Everyone, I hope this helps you with some of your questions. It is a bit overwhelming, but what isn’t these days?
VERY IMPORTANT LEGISLATION ENACTED BY CONGRESS IS TO STABILIZE THE CURRENT ECONOMIC FALL. IN DOING SO, TAKING FULL ADVANTAGE OF THIS LEGISLATION IS THROUGH COMPLIANCE WITH YOUR PAYROLL AND RELATED SOFTWARE PROVIDERS. PLEASE ORCHESTRATE ANY AND ALL QUESTIONS WITH THEM DIRECTLY. AS YOU CAN IMAGINE, EVERY PAYROLL AND SOFTWARE COMPANY IS THE SAME…BUT DIFFERENT. THERE IS A BLANKET PROTOCOL, BUT SYSTEMS NEED TO ADAPT. THEY ARE ALL DEVELOPING IT AS QUICKLY AS POSSIBLE.
Here we go!
The main provisions of the adopted legislation are summarized below, but one of the most important items to note is that no paid or job-protected leave is provided under this law unless an employee is unable to work or telework.
Both of these pieces of legislation play off each other, and the example at the end may clarify it for you.
Emergency Family and Medical Leave Expansion Act:
- The Act applies to employers with fewer than 500 employees, but the Department of Labor may exempt certain healthcare providers and employers with fewer than 50 employees.
- It provides job-protected leave for only one reason: employees are unable to work or telework because they have to care for a child whose school or daycare has closed (or regular paid childcare provider is unavailable) due to the COVID-19 emergency.
- All employees who have been employed for at least 30 calendar days are eligible for this leave, including part-time employees. (Health care providers and emergency responders may be excluded from this leave by their employers).
- Up to 12 weeks of job-protected leave is provided.
- The first 10 days of the leave is unpaid, but employees may still get paid for those days by using their sick leave, either under existing employer-provided sick leave or the 2 weeks of sick leave that must be provided under another portion of the new law (see below). Employees would have the choice, however, of whether to use their sick leave to cover the first 2 weeks or save it for later.
- After the first 10 days, the leave is to be paid at an amount that is at least 2/3 the employee’s usual rate of pay up to a maximum of $200/day and no more than $10,000 in the aggregate.
- The law calls for refundable tax credits against employer portions of social security taxes (up to certain limits).
- This legislation will become effective no later than 15 days after it becomes law.
- Note that the FMLA still requires employers to provide job-protected leave for 12 weeks for individuals suffering from or caring for a family member suffering from a serious health condition, such as COVID-19, but such leave is not required to be paid under the law (except for the 2 weeks of emergency paid sick leave described below).
Emergency Paid Sick Leave Act Relief:
- The Act applies to most employers. All public employers are covered regardless of how many employees they have. With regard to private entities, it is limited to those who employ fewer than 500 employees, but the Department of Labor may exempt certain healthcare providers and employers with fewer than 50 employees.
- This emergency paid sick leave is in addition to any paid leave an employer already provides, and employees cannot be required to use other employer-provided paid leave before using emergency paid sick leave.
- All employees are entitled to emergency paid sick leave, regardless of how long they have been employed by the employer.
- Full-time employees get 80 hours of paid leave. Part-time employees get something equivalent to what they would have worked on average over a 2-week period.
- The rate at which an employee is paid for the leave and the maximum amounts an employee is entitled to receive vary depending on the reason the leave is taken. A summary chart is provided below.
- The law calls for refundable tax credits against employer portions of social security taxes (up to certain limits) to help pay for the cost of the leave.
- The Act takes effect no later than 15 days after enactment.
- An employee may take emergency paid sick leave if the employee is unable to work or telework for one of the following reasons:
| Reason | Rate | Maximum | |
| 1 | Employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19 |
Regular pay | $511/day with an aggregate max of $5,110 |
| 2 | Employee has been advised by a health provider to self-quarantine due to concerns related to COVID-19 | Regular pay | $511/day with an aggregate max of $5,110 |
| 3 | Employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis |
Regular pay | $511/day with an aggregate max of $5,110 |
| 4 | Employee is caring for an individual who is under quarantine, isolation or self-quarantine as described in 1 and 2 above |
2/3 of regular pay | $200/day with an aggregate max of $2,000 |
| 5 | Employee is caring for a child whose school or daycare has closed (or regular paid childcare provider is unavailable) due to COVID-19 |
2/3 of regular pay | $200/day with an aggregate max of $2,000 |
| 6 | Employee is experiencing a substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretaries of Treasury and Labor |
2/3 of regular pay | $200/day with an aggregate max of $2,000 |
Example (Very good)
Employee 1 earns $300 in wages per day and requires 10 days of self-quarantine as advised by their medical provider. As a result, the employee would receive $300 in wages per day, or $3,000, under the Emergency Paid Sick Leave Act.
Employee 2 earns $300 in wages per day. Employee 2 cannot work or telework for twenty days (four weeks) as a result of caring for a child due to a school closure. As a result, the employee would receive $200 in wages per day for the first ten days under the Emergency Paid Sick Leave Act and $200 in wages per day for the second ten days under the Emergency Family and Medical Leave Expansion Act for a total of $4,000.
Total expenditure by employer in wages for both employees: $7,000
Result: Ordinarily this $7,000 would result in employer-side Social Security tax at a rate of 6.4% for a cost of $448. The legislation eliminates the $448 employer-side social security tax. Note, the legislation does not eliminate other employer-side payroll taxes (including Medicare).
For Employee 1, the employer receives a $3,000 tax credit against quarterly employer-side Social Security and Medicare payments. For Employee 2, the employer receives a $4,000 tax credit against quarterly employer-side Social Security and Medicare payments. If there are insufficient quarterly payroll taxes to credit, the credit is refundable to the employer.
In these examples, the maximum amount of Emergency Paid Sick Leave Act time has been used by both employees, and so the employer has received the maximum tax credit for those employees for that benefit. For Employee 2, $2,000 out of a maximum $10,000 Emergency Family and Medical Leave Expansion Act tax credit has been used.