The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18. The law's provisions which most impact PEOs establish new paid leave requirements and new tax credits available to employers.
On July 8, 2020, the IRS released Notice 2020-54, regulatory guidance to employers requiring employers to report the amount of qualified sick
and family leave wages paid to employees under the FFCRA on Form W-2. Employers will be required to
report these amounts either on Form W-2, Box 14, or in a statement provided
with the Form W-2. The guidance provides employers with optional language to
use in the Form W-2 instructions for employees.
The U.S. Department of Labor issued guidance for workers and employers on how the protections and requirements of the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Families First Coronavirus Response Act (FFCRA) affect the workplace as workplaces reopen amid the coronavirus pandemic.Fact Sheet for EmployeesFact Sheet for Employers Frequently Asked Questions and AnswersGuidance Posters and FAQs on Posting Requirements
FFCRA Summary & AnalysisFFCRA Final TextNAPEO AnalysisFisher Phillips Summary Groom Law Group Summary American Benefits Council SummaryUS Chamber of Commerce Summary Department of Labor Resources on FFCRADoL Wage & Hour Division Q&A Page on the FFRCATreasury/IRS Announcement on Deferral of Tax Payments
Tax CreditsThe IRS FAQs on the new tax credits note (see question 53) that PEOs filing aggregate Form 941s will now be required to complete a partial Schedule R for any clients that take the credits. CPEOs and payroll agents under Section 3504 of the IRC should likewise include the credit on their Schedules R, which they are already required to file. Additionally, clients that wish to claim the advance credit will file a newly created IRS Form 7200 (Advance of Employer Credits Due to COVID-19) and should provide their PEO a copy for reporting purposes.
IRS FAQs on COVID-19 Tax CreditsIRS Form 7200 IRS Form 7200 Instructions