Families First Coron Act

[spanel]

Division C

This only applies to parents with kids under 18? & School/Daycare must be shut down because a public health emergency?
IL shut down the entire school district until April 1st. Does this qualify as a public health emergency?

The rest of Division C I more or less understand...


Thetaxbook article does not list any exclusions to this as for example.. What employers are exempt from this? (other than over 500 employees)
I believe I read that employers that this would cause a hardship are exempt. IE not enough cash flow or would cause the business to bankrupt/close/shutdown perm.

Shows starts April 2nd, so affects 2nd quarter 941s.


Thanks!!!

Chris

[Scarecrow]

The government is reimbursing employers dollar for dollar for any medical or family leave pay under this requirement. Why would an employer trying to claim exemption from the requirement when it doesn't cost the employer anything? Why try to cheat your employees from getting this free money during a national emergency?

[spanel]

The government is reimbursing employers dollar for dollar for any medical or family leave pay under this requirement. Why would an employer trying to claim exemption from the requirement when it doesn't cost the employer anything? Why try to cheat your employees from getting this free money during a national emergency?

Believe it or not, not all business have enough cash flow to wait for the reimbursement. You wont be able to get anything back until you file your 2nd quarter 941, and then it will be in the form of a check... how long do you think that will take? So employers starting this process in April likely will not see reimbursement until August.

Chris

[rbynaker]

Believe it or not, not all business have enough cash flow to wait for the reimbursement. You wont be able to get anything back until you file your 2nd quarter 941, and then it will be in the form of a check... how long do you think that will take? So employers starting this process in April likely will not see reimbursement until August.

Chris

There's some speculation that you'll be able to deduct the credit/reimbursement from your 941 deposits (effectively "reimbursing" yourself immediately that way) but I haven't had time to look into it yet. I've also seen conflicting information about what happens if/when emergency paid sick leave exceeds total 941 taxes. One article I read mentioned offsetting SS/MC taxes but did not mention offsetting FWH.

So at the moment, I don't believe anything I read until it comes from the IRS. And even then it's subject to change at any minute.

Rick

PS: To answer the original post, yes, this is a public health emergency. So any area where schools are closed qualifies (is that everywhere at this point?)

[Scarecrow]

Believe it or not, not all business have enough cash flow to wait for the reimbursement. You wont be able to get anything back until you file your 2nd quarter 941, and then it will be in the form of a check... how long do you think that will take? So employers starting this process in April likely will not see reimbursement until August.

Chris

Well then, if you can't afford to wait for the 2nd Qt 941 to get reimbursed, fire the employees so they qualify for unemployment benefits under the new law. Filing for some kind of exemption and then dangling a carrot in front of the employee saying "I can't pay you, but I want you to wait an suffer at home without pay until all this passes so I don't lose you as an employee" is not exactly what I would call being a good employer.

[spanel]

Well then, if you can't afford to wait for the 2nd Qt 941 to get reimbursed, fire the employees so they qualify for unemployment benefits under the new law. Filing for some kind of exemption and then dangling a carrot in front of the employee saying "I can't pay you, but I want you to wait an suffer at home without pay until all this passes so I don't lose you as an employee" is not exactly what I would call being a good employer.

Wow. I'll start sending all the out of work employees your way as apparently you can Cash Flow all this!!

Chris