• Brooke Winter

FFCRA Payroll Tax Credits

What must an employer show to receive the tax credit?

Employers must be able to demonstrate that the amounts paid to employees for emergency paid sick leave and emergency paid family and medical leave were for reasons under the FFCRA. Any leaves provided over and above the requirements of the FFCRA are not eligible for the tax credit.

Types of documentation to demonstrate FFCRA-qualifying leave:

  • A notice of closure from a child’s school, place of care, or childcare provider, including a notice posted on a government, school, or day care website;

  • A notice of closure of a child’s school, place of care, or childcare provider published in a newspaper;

  • An email from an employee or official of the school, place of care, or childcare provider;

  • A government shut-down or “stay at home” order (which is typically available on the local or state government’s website); or

  • Written documentation from a health care provider recommending the employee self-quarantine.

Minimum Requirements:

  • Employee’s name

  • Qualifying reason for leave

  • Statement that the employee is unable to work (including telework) because of the qualifying reason

  • Name of the employee’s health care provider (if applicable)

  • Dates for which leave is requested

Tips & Tricks:

  • Keep documentation in a separate, confidential file for each employee

  • Establish leave codes to assist in tracking FFCRA-specific leave for timekeeping purposes (partner with your payroll providers)

  • The FFCRA paid leave does NOT require a signed third-party certification

*Disclaimer: The materials available on this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.