Sick Leave and Child Care Leave Benefits During COVID-19 Pandemic
- Learn about the qualified reasons for requesting paid sick leave.
- Find out how paid sick leave is calculated.
- Learn about qualifying for family care leave and how long it lasts.
- Discover the procedures for reimbursing employers for sick leave and family care leave.
The COVID-19 epidemic has created situations where employees are not able to work because they tested positive for the virus or have been quarantined after coming in contact with someone who has tested positive. It has also caused parents to miss work because their children’s school has closed due to the outbreak and there is no one to watch the kids.
As a result, the federal government is providing sick leave benefits and child care leave benefits to affected taxpayers whose employers have fewer than 500 employees. The way this is being handled is the employer will pay the benefits to the employee and then will be reimbursed by the government (more on this later in this article).
Fiducial has the information you need to know about qualifying for paid sick leave and family care leave. Read on for more. Have more questions? Your Fiducial representative is here for you. Visit Fiducial’s Coronavirus Update Center for more information on COVID-19 Paid Sick and Family Leave as well as emergency relief services.
Sick Leave
To qualify for paid sick leave, an employee (regardless of how long they are employed by the employer) who is unable to work in person or to telecommute for any of the following reasons qualifies for paid sick leave:
- Is subject to a COVID-19 federal, state, or local isolation or quarantine order.
- A health care provider advises them that they should self-quarantine as a result of concerns related to COVID-19. Self-quarantining without advice does not qualify.
- Is seeking medical diagnosis as a result of having symptoms of COVID-19.
- Is caring for somebody (not necessarily a family member) who is subject to a federal, state, or local isolation or quarantine due to COVID-19; or who has been advised to self-quarantine by a health care provider as a result of COVID-19.
- A child’s school or care facility has been closed or is unavailable as a result of COVID-19 and the employee needs to care for the child.
How is paid sick leave calculated?
The exact definition of what paid sick time comprises is based upon the number of hours that an employee works. For full-time employees, paid sick leave is 80 hours. Those who work part-time will be entitled to the same number of hours of paid sick leave that they would normally work during a two-week period. A special calculation method is used for those who work a significantly different number of hours each week.
Referring to the numbered qualified reasons listed above, the leave pay that is based on reasons 1, 2 and 3 will be paid at the same rate the employee is normally paid. The maximum pay is $511 per day and a total of $5,110. Those who need paid sick leave based on the reasons numbered 4 and 5 will be paid their sick leave hours at a rate equal to two-thirds of their normal pay. The maximum pay is $200 per day and a total of $2,000. These sick pay benefits are only available through the end of 2020.
Family Care Leave
Employees are able to take paid leave if they can’t work (in person or via telework) because of their care responsibilities for a child or children under 18 years of age whose school or care facility has been shuttered as a result of COVID-19. The leave period will provide compensation after the first ten unpaid days. However, employees can use accrued paid sick or vacation time to provide payment for those ten days. The compensation will be calculated at two-thirds of the employee’s normal wages for the number of hours that they were regularly scheduled to work. Their pay will max out at $200 per day and a total of $10,000.
The law does not require the employer be provided any advance notice. However, employees should give the employer notice as soon as events permit.
How do employers recoup their losses for paid sick time or family care leave?
Employers who pay qualifying sick or child care leave will recoup the payments. They will be able to retain the income, Social Security and Medicare taxes (payroll taxes) withheld from employees that they would normally submit to the government in an amount equal to the amount of qualifying sick and child care leave that they paid. The employer’s share of Social Security and Medicare taxes are also eligible to be retained. Where the payroll taxes aren’t enough to cover the leave payments, employers may request an accelerated payment from the IRS. The IRS plans to announce details of the accelerated payment procedure before the end of March, 2020.
Have questions related to these special benefits for 2020 or need additional details? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations. Ready to book an appointment now? Click here. Know someone who might need our services? We love referrals!
