Employers paying for paid leave under the requirements of the Families First Coronavirus Response Act (FFCRA) should expect to receive refundable tax credits to cover their full costs, according to an article by HRDive.com.
According to a joint news release by the U.S. Treasury Department, IRS and U.S. Department of Labor, small and midsize employers can begin taking advantage of two new refundable payroll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees.
Health insurance costs are included in the credit, according to Dive writer Ryan Golden, while employers face no tax liability and self-employed individuals will receive an equivalent credit.
Meanwhile, the IRS this morning provided details on how it has changed its enforcement compliance with tax laws under the coronavirus pandemic.
“These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection and limiting certain enforcement actions,” the IRS said in a statement. “The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15.”
