How The Latest EPSL/PFMLA Updates Might Affect Your Restaurant

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What Are The New Adjustments to EPSL/PFMLA?

The American Rescue Plan Act of 2021 extended and made minor adjustments to the tax credits associated with Emergency Paid Sick Leave and Paid Family and Medical Leave originally enacted under the FFCRA (Families First Coronavirus Response Act), the act did not extend the requirement to pay wages under either category. Therefore, employers who voluntarily choose to pay Emergency Paid Sick Leave and/or Paid Family and Medical Leave for qualified reasons will receive a tax credit.

What Are Employees Eligible For Within EPSL or PFMLA?

Employees are still eligible for up to 80 hours of Emergency Paid Sick Leave. Additionally, employees are now eligible for up to 12-weeks of Paid Family and Medical Leave.

What Is The New Limit On The Credit For PFMLA?

The act increases the limit on the credit for Paid Family and Medical Leave to $12,000 over 12-weeks; the previous limit was $10,000 over 10-weeks.

Are There New Reasons That Qualify For Eligible Leave?

Reasons for eligible leave have been expanded to include obtaining or recovering from COVID-19 immunization.

Do EPSL/PFMLA hours and wages paid prior to April 1, 2021 reduce the number of hours and amount of wages an employee can be paid from April 1, 2021 through September 30, 2021?

No, the limitation on the overall number of hours and wages taken into account for EPSL/PFMLA reset after March 31, 2021.

What Are The Changes To The Tax Credits Associated With EPSL/PFMLA?

The act changed the tax credit calculation to include the employer’s portion of social security in addition to the employer’s portion of Medicare. Prior to April 1, 2021, the tax credit only included the employer’s portion of Medicare.

RASI CLIENTS: RASI’s payroll and tax calculations have been updated to reflect these changes and the paid leave job codes are now available when entering payroll hours or creating a net pay.

The information icon on each job code provides details specific to that job code, e.g., the reasons each job code should be used and the maximum amounts eligible for the credit.

To view our webinar covering paid leave under the FFCRA and the available resources used to manage paid leave, click here. Additionally, there are resources and FAQs regarding paid leave under the FFCRA, which can be found here.

If you have any questions please send an email to Compliance@rsiaccounting.com or, if you’re a RASI Client, please send a Support Request regarding Compliance.