FFCRA COVID-19 leave is voluntary for Q1 2021

Employers subject to the Families First Coronavirus Relief Act (FFCRA or the Act) should be aware that they are no longer required to provide paid leave to employees for the COVID-19 related reasons specified in the Act. In the Consolidated Appropriations Act, 2021 (CAA), which became law on December 27, 2020, Congress allowed the FFCRA leave mandate to sunset effective December 31, 2020. However, Congress retained the FFCRA tax credit through the first quarter of 2021. This means that covered employers may voluntarily provide FFCRA leave to eligible employees through March 31, 2021, in which case they can recover the costs of the leave through the FFCRA’s fully refundable tax credit.

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