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Client Alerts | 03.28.20

IRS Issues Guidance on Payroll Tax Credit under the Families First Coronavirus Response Act

The U.S. Internal Revenue Service (“IRS”) has released initial guidance regarding the mechanics of the payroll tax relief under the Families First Coronavirus Response Act (the “Act”).  As discussed in our prior alert, the Act, among other things, requires employers with fewer than 500 employees (“Covered Employers”) to provide paid sick leave and expanded family and medical leave to employees who cannot work or telework for qualifying reasons related to COVID-19 (collectively, “FFCRA Leave”), and in return reimburses employers for the cost of providing FFCRA Leave through a refundable payroll tax credit (the “FFCRA Tax Credit”).  The FFCRA Leave requirements become effective on April 1, 2020 and remain in effect through December 31, 2020.  The DOL has issued its initial guidance regarding the FFCRA Leave requirements, which we discussed in this client alert.

PDF of the Client Alert:  IRS Issues Guidance on Payroll Tax Credit under the Families First Coronavirus Response Act.

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