Dear VRS P.C. Clients,
We are thinking of you all during these uncertain times and want to be an essential resource to you as you make critical business decisions. Every minute we are educating ourselves on the new federal and state legislation related to COVID-19, and how it will impact your business.
As part of federal House Resolution 6201, Families First Coronavirus Response Act, signed into law by the President on March 18th, 2020, the federal government enacted provisions that will essentially cover the cost of full-time employees who self-quarantine, seek a diagnosis, or receive treatment for COVID-19 related to payroll and health insurance for up to two weeks (up to $511 per day, per employee). This benefit is being referred to as Emergency Paid Sick Leave. In order to receive this credit, every employee must return from this temporary layoff.
For employees required to take time off to care for children if their schools have closed or child care providers are unavailable, they will be eligible for two-thirds of their typical pay (up to $200 per day, per employee.)
As the employer, you will need to cover your payroll costs in the short term. The federal government has committed to reimbursing employers for this expense within three months via a payroll tax credit, or a check if your reimbursement exceeds your payroll tax liability.
More benefits and federal funds are available to cover other payroll costs for up to 12 weeks and small business loans may be available to help cover your operating costs, and we will send updates related to that shortly. Our priority now is helping you understand the cost of your employees for two weeks will be covered by the government so please consider that while making business decisions.
We hope to keep you informed and as always, please call us to with questions and let us be a valuable resource to you.
Take care & wishing you all good health,
VRS P.C.