TOOL: PAID MEDICAL AND CHILD CARE LEAVE GOES EFFECTIVE 4/1/20

Here are the main points for mandated medical leave and child care.

  1. Beginning April 1st you must comply with the new paid leave mandate.

  2. If you have fewer than 500 employees the law applies to you

  3. Sick leave is for ten days (two work weeks). It covers someone under quarantine, self-quarantine or someone with COVID-19 symptoms seeking a diagnosis. These people get 100% of their regular pay, limited to $511 per day.

  4. Sick leave can also be taken for ten days if someone is caring for a COVID-19 patient or who has to stay home to care for a child because the child care provider or child’s school is closed. These people get 2/3 of their regular pay for two weeks up to $200 per day.

  5. Child care leave is available for an additional 10 weeks at 2/3 pay up to $200 per day.

  6. If you have fewer than 50 employees and child care leave is going to put you out of business you can request an exemption.

  7. Employers can use their payroll tax deposits to make these payments.

  8. If the payroll tax deposit is not enough to keep the employer from coming out of pocket the employer can request an advance refund. IRS expects these requests to be processed in two weeks or less.

HOW ARE YOU GOING TO AFFORD THIS? The concern has been cash flow. Watch the video for an example of how this will work.