Family First Coronavirus Response Act : Paid Leave Provisions Expire December 31, 2020

The paid leave provisions of the FFCRA, including leave to care for children who are out of school due to the pandemic, and paid sick leave for caring for yourself or a household member, expire December 31, 2021.

The new stimulus bill will extend the tax credits, but not the framework requiring employers to provide leave, through March 31, 2021. Signed into law this week, this means that employers would have the option to provide paid leave between January 1, 2021 and March 31, 2021, and would be able to claim tax credits for doing so, but would not be required to provide this leave.

As we head into 2021, employers who provided paid leave as required under the FFCRA should make sure that they have everything they need to claim tax credits, if it was not already done with quarterly filings. They should be collecting this information from employees as they request leave, and hold onto it for at least 4 years from the date that the tax is due or paid, whichever is later.