February 1, 2021

IRS FAQs Tax Credits FFCRA Leave


On Jan. 29, 2021, the IRS updated its frequently asked questions (FAQs) on tax credits available to employers for providing paid employee leave under the Families First Coronavirus Response Act (FFCRA).

While the leave requirements of the FFCRA expired on Dec. 31, 2020, the law’s tax credits were extended for employers that voluntarily provide FFCRA leave to employees through March 31, 2021. The FAQ updates address this extension.

FFCRA Leave Provisions

The FFCRA, enacted on March 18, 2020, required employers with fewer than 500 employees to provide employees 80 hours of emergency paid sick leave and 10 weeks of expanded paid family leave for specified COVID-19-related reasons.

These leave requirements expired on Dec. 31, 2020.

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