New employer credit available for paid family leave

 

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May 8, 2020

Eligible employers can receive a refundable credit for required leave provided to employees who are unable to work or telework because they're caring for someone with COVID-19, caring for a child whose school or place of care is closed, or childcare is unavailable due to COVID-19.

Employers are entitled to a sick leave credit for up to 80 hours limited to 2/3 of employee's regular pay or up to $200 per day, but no more than $2,000 per employee in total, plus related health care costs.

Eligible employers can claim tax credits for leave taken from April 1, 2020 - December 31, 2020, on Form 941 or Form 7200 for an advance credit.

For more information, visit the New Employer Tax Credits page on IRS.gov.