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No tax credit for paid Families First COVID leave after Sept. 30

October 1, 2021
The Families First Coronavirus Response Act (FFCRA) established a mandatory obligation to provide employees with paid emergency sick and family medical leave until Dec. 31, 2020. Since then, dealerships have had access to tax credits to offset the cost of any such leave provided to their employees voluntarily. Unless extended by Congress (which appears unlikely) those tax credits were available for FFCRA leave provided on or before Sept. 30, 2021
With the end of these tax credits, dealerships should: 
1. Determine if they will provide voluntary paid leave for any (or all) of the permissible FFCRA purposes through Sept. 30, 2021;
2. Take advantage of the tax credits available for any such paid leave; and
3. Review existing leave policies and applicable family and medical leave mandates, for their potential application to leave requests for FFCRA-type purposes. Important: State and local law may impose leave mandates over and above those imposed by federal law. 
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