Skip to content

Families First Coronavirus Response Bill

The US government is announcing numerous endeavors to provide relief from the effects of the Coronavirus pandemic. As tax and business announcements become codified we will post them.<
 <
As part of our COVID-19 response, we are asking clients to submit tax information digitally, when possible, via our Document Access Portal, and are making extensive use video or telephone conferences in lue of appointments.<
 <
If you do not have a personal portal setup please use: Document Upload<

The US House of Representatives approved Families First Coronavirus Response Bill could provide $15 million to worth of tax credits for paid sick, family, and medical leave. Treasury Secretary Steven Mnuchin stated that "this bill will provide significant relief to small businesses that cannot afford the employee costs associated with coronavirus.... The bill provides a dollar for dollar reimbursement for coronavirus related sick leave costs. To protect businesses concerned about cash flow, the Treasury will use its regulatory authority to advance funds to employers in a number of ways," Furthermore he added. "Employers will be able to use cash deposited with the IRS to pay sick leave wages. Additionally, for businesses that would not have sufficient taxes to draw from, Treasury will use its regulatory authority to make advances to small businesses to cover such costs."

Note, as of March 17, 2020 this bill has not passed the US Senate.

In summary the bill provides the following tax credits:

a refundable tax credit equal to 100 percent of qualified paid sick leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the tax imposed by Code Sec. 3111(a) (the employer portion of Social Security taxes);

a refundable tax credit equal to 100 percent of a qualified sick leave equivalent amount for eligible self-employed individuals, and those caring for a family member or for a child whose school or place of care has been closed due to coronavirus, the bill would provide a refundable tax credit equal to 67 percent of a qualified sick leave equivalent amount;

a refundable tax credit equal to 100 percent of qualified family leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the tax imposed by Code Sec. 3111(a) (the employer portion of Social Security taxes); and

a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount for eligible self-employed individuals.

As the bill is potentially finalized, we will post further information.