The Internal Revenue Service (IRS) has issued a set of FAQs on the paid leave provisions enacted by the Families First Coronavirus Response Act (FFCRA, P.L. 116-127). The new law provides certain businesses with fewer than 500 employees tax credits to grant paid leave to employees, either for the employee's own health needs or to care for a family member.

The IRS FAQs, which cover more than 60 questions, include many on the basic operation of the credits for paid leave. In addition, the questions posed and answered in the FAQs cover the following major areas:

• Determining the Amount of the Tax Credit for Qualified Family Leave Wage
• Determining the Amount of Allocable Qualified Health Plan Expenses
• How to Claim the Credits
• How Should an Employer Substantiate Eligibility for Tax Credits for Qualified Leave Wages?
• Periods of Time for Which Credits are Available
• Special Issues for Employers: Taxation and Deductibility of Tax Credits
• Special Issues for Employers: Interaction of FFCRA Tax Credits with Other Tax Credits
• Special Issues for Employers: Use of Third-Party Payers
• Special Issues for Employers: Other Issues
• Special Issues for Employees
• Specific Provisions Related to Self-Employed Individuals

The agency says it will add to and update these FAQs going forward. The IRS FAQs are posted here.

The Department of Labor (DOL) has posted its own set of FAQs on FFRCA's paid leave provisions and has been revising and adding new content since first posted late last week. For example, DOL recently revised FAQ numbers 7, 31 and 32, which cover the following questions:

7.  As an employee, how much will I be paid while taking paid sick leave or expanded family and medical leave under the FFCRA?

31.  As an employee, may I use my employer's preexisting leave entitlements and my FFCRA paid sick leave and expanded family and medical leave concurrently for the same hours? 

32.  If I am an employer, may I use the paid sick leave mandated under the EPSLA to satisfy paid leave entitlements that an employee may have under my paid leave policy?

The DOL's FAQ page on paid leave is posted here.

As noted in a prior Tax Flash, the DOL today issued temporary regulations on paid leave. These rules are posted here.

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