We are studying new COVID-19 related laws and regulations as they come out, that affect our friends, families and business clients. A new law passed last week that requires employers to pay additional paid time off (sick leave) for those impacted by Covid-19. Here are some summary points. Please call us if you have questions or issues. We are here to help you.
Business with less than 500 employees will need to pay an additional two weeks of paid time off for employees who are unable to work or telework because either:
1. They or someone they have to care for has to quarantine (quarantine order or self-quarantine advised by a health care provider)
2. They have COVID-19 symptoms
3. They are caring for their child due to the unavailability of their child’s regular childcare or school due to COVID-19
This means full time = 80 hours and part time is based on the average number of hours worked per two weeks, over the past six months or reasonable approximation of what was anticipated
For employees on leave due to being placed in isolation or experiencing COVID-19 symptoms, paid sick leave is paid
at their full regular rate, capped at $511 per day and $5,110 in the aggregate.
For employees on leave due to the other reasons provided in the Act, paid sick leave is at 2/3 the employee’s regular
rate, capped at $200 per day and $2,000 in the aggregate.
This starts April 2 and ends Dec 31.
Business with less than 500 employees will be able to take a payroll tax credit for this extra paid time off, against Social Security Tax liability for each quarter, including claiming a refund if the credit exceeds the companies social security taxes for any calendar quarter.
Note: The Secretary of Labor may exempt employers with less than 50 employees from the paid sick leave requirements if compliance would jeopardize the business’s viability as a going concern and may also exclude certain health care providers and emergency responders from the definition of eligible employee .
Our Best Regards,
Ellen Wolf and y our Wolf Wallenstein Team
Ewolf@wolfwallenstein.com
Office: (310) 622-1000
Cell: (310) 883-8239
