COVID19 - FLMA goes into effect on April 1, 2020.
This earning will become available for 4/1/2020 and applies to leave take between April 1, 2020 and December 31, 2020.
COVID19 - FLMA can be added within the application during the payroll process:
Click the teal + sign beneath the earnings column > Create Earning > Enter a description and choose the appropriate earning model from the drop down > Create Earning > The model automatically brings in the employees rate on the grid - Do not change the rate as the application will automatically apply the 2/3rds Rule, add the hours > Add Earning
Once the earning has been added, the application will account for the reduction of ER Social Security liability associated with this specific earning.
**Please note this article will be updated as additional information becomes available.**
Notice Requirements: Employers must post a notice for employees to see as provided by the federal government. We will send you a copy of the proper notice as soon as available.
When should this earning be used? Employees may be eligible for COVID19- FLMA if they meet the below criteria:
- When caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19
Interaction with Other Employer-Provided Paid Sick Leave and other Paid Leave:
- This act does not preempt existing state and local paid sick leave requirements.
- Employers cannot require employees to use other leave first.
- Sick leave provided for under the act does not carry over from year to year, and the requirements expire December 31, 2020.
Covered Leave Purpose: Up to 12 weeks of job protected leave to:
- Adhere to the requirements or recommendation to quarantine due to exposure or symptoms of coronavirus.
- Care for a family member who is adhering to the requirements or recommendation to quarantine due to exposure or symptoms of coronavirus.
- Care for a child of the employee if the child's school or place of care has been closed or is unavailable due to coronavirus.
Compensation:
- No pay for first 10 days of leave (other paid time off, and emergency sick leave under the FFCRA, may be applied)
- After 10 days, employers must pay two thirds of the employee's regular rate of pay for the number of hours they would normally be scheduled to work, capped at $200/day and $10,000 total.
Normal reinstatement provisions will apply as traditional FMLA with the exception of employers with fewer than 25 employees under certain conditions:
- The job no longer exists because of changes to the economy due to the public health emergency;
- The employer must make reasonable efforts to return the employee to an equivalent position for at least one year following the return date.
Note: Small business employers with fewer than 50 employees may be able to apply for exempt status if business viability is jeopardized. We will provide you with additional information when it becomes available.
Payroll Tax Credit
- Applies to both the emergency FMLA expansion and the emergency sick leave.
- Dollar for dollar credit for sick leave and paid FMLA wages against the employer portion of Social Security taxes.
- Refund is possible for amounts that exceed what is available as a credit.
Resources:
Family First Coronavirus Response Act
CertiPay News: COVID-19 Client Update 3.23.2020
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