FAMILIES FIRST CORONAVIRUS RESPONSE ACT POLICY (H.R. 6201 Legislation for U.S. Customers)#
The Families First Coronavirus Response Act (HR 6201) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19 starting on April 1.
The act gives all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members.
Clients should determine how to comply with this legislation and then NEOGOV can assist them with different configuration options.
To learn more, please read the Legislative Bill
.
Leave Policies#
The Act provides the creation of two paid leaves policies. These leave policies are effective April 1, 2020 and currently expire December 31, 2020Benefit Continuation#
- Coverage under group health insurance will continue while the employee is on leave.
- Employee must continue to pay their portion of the premium, if applicable.
- Optional benefits will also continue as long as the employee continues to pay any required contributions.
Taxation#
- The payments of either family leave (E-FMLA) or sick pay (E-SICK) under the Act are exempt from the employer Social Security (FICA) taxes.
- If your organization is exempt from Employee FICA contribution for payments made under HR 6201, the instructions on set up are available here. If your organization is not exempt, this is not required.
Frequently Asked Questions#
- For a list of Frequently Asked Questions click here