The U.S. Congress has passed the Families First Coronavirus Response Act (FFCRA or Act), which goes into effect April 1 and provides unprecedented support to employers to provide Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave to workers affected by COVID-19. The New Jersey Department of Labor and Workforce Development (NJDOL) is urging employers to keep employees on the payroll throughout the COVID-19 pandemic and to take advantage of a 100 percent, dollar-for-dollar payroll tax credit provided under the FFCRA.
The payroll tax credit immediately and fully reimburses employers with fewer than 500 employees (99.8 percent of all NJ employers) by allowing them to reduce their federal payroll taxes by the amount spent on emergency leave for all qualifying wages. Qualifying wages are those paid to an employee who takes leave under the act for a qualifying reason. This tax credit enables businesses to keep workers on their payrolls and ensures that parents and caregivers do not have to choose between earning their paycheck or staying at home to care for themselves or a family member.
Under the act’s federal paid sick leave program, an employee is entitled to 80 hours (up to two weeks) of paid leave. Under the act’s expanded Family and Medical Leave program, an employee is entitled to 12 weeks of job-protected leave, the first two weeks of which are unpaid, and the remaining 10 weeks of which are paid.
- For general questions, please visit the U.S. Department of Labor’s FFCRA Q&A.
- For more information on which employers are covered under the law, visit the U.S. Department of Labor's FFCRA Paid Leave Requirements.
- To understand how to access FFCRA Business Tax Credits, visit the IRS coronavirus announcement.
- For information on how these provisions apply New Jersey, visit the New Jersey Department of Labor and Workforce Development (NJDOL).
Updated: March 31, 2020
Source: Families First Coronavirus Response Act: Employer Paid Leave Requirements | U.S. Department of Labor