Governments are passing legislation rapidly and getting a handle on the new rules will be daunting. More challenging, while trying to model future revenues and corresponding costs, the cost rules may be changing so we better know as much as possible what we need to take into consideration.
US:
Disclaimer - I am not an attorney and not able to advise on legal issues at the federal, state or local levels. I am including this notice here just to make US employers aware of new legislation that they need to get familiar with somewhat quickly.
The Federal government passed on Friday, 3/18, the Families First Coronavirus Response Act. In trying to make sense of this, I've looked at a few articles and there are discrepancies between them so I don't have clarity yet on what it all means. As far as I can tell, it goes into effect on or around 4/2/2020 (15 days from the date signed) and expire on 12/31/2020. These rules apply to companies under 500 employees. If you are under 50 employees, you can apply for an exemption, but will be subject to the provisions until you get the exemption. Here are key points as I understand them:
The Act requires employers to provide emergency paid sick leave of 10 business days of emergency paid sick leave to all employees up to a maximum of $511 per day for the following COVID-19:
Directed to quarantine by the federal, state, or local government.
Told by a health care provider to self-quarantine
Employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis (self-quarantining).
Employee is caring for an individual who is quarantining under the 3 provisions above.
Employee is caring for a child who's school is closed or the day-care provider is closed or quarantining.
Employee is experiencing symptoms of COVID-19.
Employer may not require employee to use other paid time off before providing emergency sick leave.
Employers do not need to pay the employer FICA on these wages.
Expansions of the Federal and Medical Leave Act (FMLA) - an employee may take up to 12 weeks off of job protected leave under 2 conditions:
They are caring for someone with COVID-19,
They are caring for a child who's school is closed due to COVID-19.
Employer does not need to pay for the first 10 days or require employee to use earned sick, vacation, etc. time.
After 10 days, the employer must pay the employee 2/3s of their regular rate of pay up to $200/day, or $10,000 total.
The Act grants a Tax Credit to cover the emergency sick leave and FMLA leave based on what was actually paid to the employee. The Tax Credit will apply against the Employer FICA expense.
Employers do not need to pay the employer FICA on these wages.
Here's an article that gets into more details - there are many others - read and search for information on this important legislation. If you find any inaccuraries or additions you believe I need to make to the information above, please leave it in your comments.:
Family First Corona Virus Response Act