DOL News Release on the FFCRA Leave Laws- Tax Credits & Enforcement
Laws and regulations are changing rapidly. After the publication of this article they are subject to change. Check back regularly for updates.
The Department of Labor issued a news release Friday, March 20th, shedding a little more light on how the tax credits will work. While this release is not a law or regulation, it sheds light on how the Department of Labor will likely address the issues listed. The key takeaways from the DOL news release are below:
- The DOL says that an employer issuing paid leave under the Act can retain the payroll taxes normally deducted and deposited with the IRS equal to the amount of qualifying leave paid under the Act. If the payroll taxes are less than the leave paid, the employer can request an accelerated payment from the IRS. There will be more to come this week. The news release claims that the reimbursement will be “quick and easy” to obtain. It also provides examples for how the tax credit would work.
- The DOL will have a non-enforcement period for reasonable, good faith compliance efforts for 30 days after the April 2nd effective date.