The mandatory requirement that employers provide emergency paid sick and expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA) expired on Dec. 31, 2020. The FFCRA provided up to 10 days of emergency paid sick leave, with varying levels of pay, for any of six COVID-19 qualifying reasons.
On December 27, 2020, the Consolidated Appropriations Act (CAA), 2021 was signed into law. The CAA extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021. Note, the CAA did not extend an eligible employee’s mandatory entitlement to FFCRA leave beyond December 31, 2020.
This mean employers may voluntarily extend the use of any unused 2020 FFCRA emergency paid sick leave to employees until March 31, 2021. Employers with questions about claiming the refundable tax credits for qualified leave wages should consult with the IRS. Information can be found on the IRS website.