Page 3 - NCISS COVID Virus Resources Packet
P. 3


                   The below has been compiled from third party research, our lobbyist, other associations
                   and media outlets. Special thanks to Jason Ortega with Lobbyit.

                   PHASE I – Relief Aide (as of 3-20-2020)

                   The Treasury Department and the Department of Labor jointly announced the outlines of
                   guidance,on the new tax credits available to small businesses to cover the costs of the paid
                   sick and family leave requirements that were just signed into law through the enactment of
                   the Families First Coronavirus Response Act. Businesses that pay sick or childcare leave
                   under the new law can keep the same amount of payroll taxes as the leave they paid,
                   instead of sending that amount to the IRS.

                   Companies can get up to $511 per day for a total of 10 days for each employee under the
                   paid sick leave credit. For the family and medical leave credit, they can get up to $200 per
                   day for up to 10 days for employees who take such time away from their job. Eligible
                   employers can also receive a refundable childcare leave credit up to $200 per day for as
                   long as 10 weeks.

                   From the joint agency announcement:

                   Key Takeaways

               •  Paid Sick Leave for Workers
                       o  For COVID-19 related reasons, employees receive up to 80 hours of paid sick
                          leave and expanded paid child care leave when employees’ children’s schools are
                          closed or child care providers are unavailable.

               •  Complete Coverage
                       o  Employers receive 100% reimbursement for paid leave pursuant to the Act.
                              ▪  Health insurance costs are also included in the credit.
                              ▪  Employers face no payroll tax liability.
                              ▪  Self-employed individuals receive an equivalent credit.
               •  Fast Funds
                       o  Reimbursement will be quick and easy to obtain.
                              ▪  An immediate dollar-for-dollar tax offset against payroll taxes will be
                              ▪  Where a refund is owed, the IRS will send the refund as quickly as possible.
               •  Small Business Protection
                       o  Employers with fewer than 50 employees are eligible for an exemption from the
                          requirements to provide leave to care for a child whose school is closed or child
                          care is unavailable in cases where the viability of the business is threatened.

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