The FFCRA created new paid family and paid sick leave provisions for certain reasons related to COVID-19. The COVID-related Tax Relief Act of 2020 (CTRA) extends the tax credit portion of the FFCRA for employers that voluntarily offer paid leave, but not the mandatory leave portion, through March 31, 2021. FFCRA earnings and memo codes needed for employers to claim these tax credits will be available for use through March 31, 2021.
IMPORTANT: Please note that eligible wage amount limits were not reset for 2021.
FFCRA Wage Amount Limits
Wages eligible for the tax credit are $5,110 for care required for the employee; $2,000 for care provided to others; and $10,000 in family leave if the employee is unable to work or telework. These amounts are not reset for 2021. Therefore, if such amounts were exhausted for an employee in 2020, any leave payments to that employee in 2021 do not qualify for the tax credit in 2021.