Many employers are providing voluntary Families First Coronavirus Response Act (FFCRA) leave, even though organizations aren’t sure if they will qualify for a tax credit for doing so. Employer obligations to provide FFCRA paid sick and family leave expired at the end of last year, but the Consolidated Appropriations Act of 2021 (CAA) extended the payroll tax credits for employers that choose to provide paid FFCRA-like leave.
The CAA “only makes additional leave that would have been covered by FFCRA eligible for tax credits, even though it’s now voluntary rather than mandatory,” said Maura McLaughlin, an attorney with Morgan, Brown & Joy in Boston.
