The Families First Coronavirus Response Act (FFCRA) is designed to help businesses and employers survive the COIVID-19 outbreak and stay intact. https://www.onlinecheck.com/blog/small-business-resources/understanding-the-families-first-coronavirus-response-act-ffcra/

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INFO
GRAPHIC
Understanding
the Families
First
Coronavirus
Response Act
(FFCRA)

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The business is not usual since the coronavirus outbreak. The U.S.
business industry has changed drastically in the past few weeks due to
the coronavirus outbreak, creating distress for businesses to close down
or lay off employees. The U.S. Government has established measures
to help safeguard businesses and residents whose financial and
physical welfare are affected significantly by the COVID-19 crisis. The
Congress passed the Families First Coronavirus Response Act
(FFCRA), or HR 6201, that provides Americans different benefits
including free COVID-19 testing, access to food, unemployment, and
medical benefits, paid sick, family and medical leave for the employees.

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The Wage and Hour Division (WHD) of the U.S
Department of Labor manages and administers the new
law’s paid leave requirements and that apply from the
effective date through December 31, 2020.
As your small business financial partner, it is our job to
be on top of such legislation changes and development
to help keep business owners informed. To make things
easier for you, we’ve summarized key points of Families
First Coronavirus Response Act that can affect your
small business.

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the abacus or
activity of athering
information about
consumers' needs
and preferences
Emergency
Family and
Medical
Leave Act
(FMLA)
Expansion
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The Wage and Hour Division (WHD)
of the U.S Department of Labor
manages and administers the new
law’s paid leave requirements and
that apply from the effective date
through December 31, 2020.
As your small business financial
The emergency paid family provisions under the FFCRA amend the Emergency
Family and Medical Leave Act (FMLA) and require employers (business
owners) to provide employees with paid benefits.
Businesses with less than 500 employees are required to provide up to 12 weeks
of paid FMLA to employees that are unable to work (or work remotely) because
the employees have to care for their children (under 18 years of age) because
the school has been closed, or the childcare provider is unavailable due to the
coronavirus health emergency.
Any full-time or part-time employee is eligible to job-protected leave if he or she
has been on the employer’s payroll for at least 30 days, before taking the leave.
Employees can substitute available paid leaves and the first two weeks may be
unpaid. The employees are entitled to ten weeks of job-protected leave at two-
thirds of their regular rate of pay after two weeks of unpaid leave. The paid leave
is capped at $200 per day ($10,000 in total) for the full 10 weeks.

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Exemptions
Any business with less than 50 employees are exempt from these
provisions, provided the leave would jeopardize the viability of the
business.
Businesses with less than 25 employees don’t have to reinstate
an employee to their position after the leave. For businesses with
more than 25 employees, reinstating employees to their positions
is compulsory.
Aby business with less than 50 employees is exempt from civil
actions brought by employees for violations regarding emergency
paid FMLA.
Health care providers or emergency responders can exclude their
employees from paid FMLA expansion.

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Emergency Paid Sick Leave
The U.S. Department of Labor the provision for emergency paid sick leave for
employees. For businesses with 50-500, the act requires them to provide two weeks of
sick leave to all employees. Full-time employees (employed for at least 30 days) will
receive full pay for two weeks, while part-time employees will receive pay equal to their
average hours for two weeks.
An employee is eligible to fully paid sick leave if he/she is under federal, state or local
quarantine or experiencing COVID-19 related illness. Under such circumstances, the
amount is capped at $511/day ($5,110 total).
For employees caring for family members under quarantine or a child whose school is
closed due to COVID-19 will receive two-thirds of their full pay for two weeks. Under
such circumstances, the benefit is limited to $200/day ($2,000 total).
Note: Any paid leave provided before this law cannot be credited against the
employee’s paid leave entitlement and hours cannot be carried over after Dec. 31.

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Exemptions
Any business with less than 50 employees are
exempt from these provisions, provided the leave
would jeopardize the viability of the business.
The absence of an employee or employees
involving a substantial risk to the financial health
or operational capability of the small business for
their expertise or responsibilities.

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Refundable Tax Credits for Paid Sick Leave and FMLA
To help businesses compensate for the cost of providing Coronavirus-related leave
associated with the act, the U.S. government is providing quarterly refundable tax
credits. Employers will get reimbursement for all wages paid under the act as well as
the amount a business may need to pay to maintain an employee’s health insurance
coverage by increasing the employer’s tax credit.
The tax credits are applied against an employer’s Social Security taxes for the qualified
sick and family leave wages paid out. If the tax credits don’t cover the employee
payouts, the Treasury Department is authorized to help cover the rest with cash
payouts. Moreover, the Treasury is also issuing regulations to waive penalties for
businesses that don’t submit payroll taxes because they’re waiting for a refund under
this new law. Business owners can use this form to request an expedited advance on
their refund
According to the Treasury Department, a form will be available soon for small
businesses to request an expedited advance on their refund. To get more details on
these tax credits and other relief, visit Coronavirus Tax Relief on the IRS website.

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The Bottom Line
With new legislations evolving, businesses have to be informed while making
decisions and considering layoffs or staff changes, especially in the current
health emergency. If the act applies to your small business, it’s time to get in
compliance by determining the facets relevant to your business and work with
your affected employees. If your employees are claiming benefits through the
FFCRA, make sure you have proper documentation to file for your own tax
credits.
It might take some time to receive your tax credits because of so many affected
businesses. Getting a short-term business loan can help fill the cashflow gap.
There is a variety of financial assistance available from the SBA economic
injury disaster loans to paycheck protection program loans, grants and
relief from private and nonprofit organizations and small business
loans from private lenders. With healthy cash flow and sound financials, you
can survive the COIVID-19 crisis and stay intact.