IRS Provides Guidance for Employers to Claim Tax Credits for Emergency Paid Sick Leave Act and Expanded FMLA Payments

The IRS has posted at its website much-anticipated guidance for claiming tax credits for amounts paid by employers under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Expanded Leave Act (Expanded FMLA), as provided in the Families First Coronavirus Response Act (FFCRA). The guidance contains 66 FAQs that cover all aspects of the tax credits.

The FFCRA was passed in response to the coronavirus pandemic and provides that employers may claim tax credits for amounts required to be paid for qualifying EPSLA or Expanded FMLA leave of absence that is taken April 1, 2020, through December 31, 2020.