2021 FFCRA Update: Get a Tax Credit When You Provide COVID-19 PTO

You can get a tax break when an employee is exposed to COVID-19 this Spring – or has to care for an ill child, and you compensate your staff for the time off. 2021 FFCRA Update.

The mandatory paid time off that you had to provide under the Families First Coronavirus Response Act (FFCRA) expired Dec. 31, 2020. Instead, the feds are offering you a carrot to encourage you to provide COVID-19 related paid time off. Here’s how to use FFCRA tax breaks to benefit both your practice and your staff.

2021 FFCRA Update: Give Time Off; Get a Tax Credit

The FFCRA mandated that you provide employees up to two weeks (80 hours) of emergency paid sick leave (EPSL) and 12 weeks of emergency paid Family and Medical Leave Act (FMLA) between April 1, 2020 and March 31, 2021. While the new stimulus bill (Consolidated Appropriations Act, 2021) passed on December 27 did not extend the FFCRA leave obligations, the refundable payroll tax credits were. That means, if your practice offers voluntarily COVID-related paid sick and family leave to your employees, you can apply for tax credit for PTO given.

Since there are no new funds available for FFCRA in 2021, you’ll need to think carefully about your employees being out of the office. If they’ve already exhausted the entire bank of FFCRA PTO and paid emergency leave and don’t have any PTO accrued with your practice, maybe the time off needs to convert to an unpaid FMLA leave. 2021 FFCRA Update.

Be sure to check if the reason for the employee’s absence requires you to provide accommodations under the Americans with Disabilities Act (ADA). Depending on the reason for absence, the ADA could come into play – especially if your employee qualifies as a COVID-19 “long hauler,” – someone whose coronavirus symptoms persist.

Heads up: Some states have kept leave laws in effect. In addition, the Biden administration is considering adding mandatory PTO due to COVID-19. Stay tuned to Healthcare Practice Advisor for the latest requirements you must follow.

PTO Policies to Protect Your Practice Right Now

With the rapid changes in rules, you must carefully prepare your practice for every COVID-19 related staff situation and develop policies that ensure you keep your employees and patients safe – and your practice operational. Experts recommend implementing the following terms:

Mandate: Make it clear that employees experiencing symptoms or those who’ve been exposed to COVID-19 MUST stay home or work from home if possible
Trust: Be compassionate and flexible with employee situations where you can
Innovate: Implement work-from-home protocols where appropriate
Encourage: Practice transparency with employees and, where possible, assure workplace stability and viability
Review: Rework business travel policies with an eye to the anticipated value of vendor visits and conferences versus the risk of exposure and workplace contagion

For more tips on how to navigate your staff’s COVID-related absences, there is help from healthcare employment law attorneys, Amanda L. Waesch, Esq. and Bryan E. Meek, Esq. By attending their session, you’ll learn step-by-step advice on how to create and implement compliant employment policies, along with solutions to real-life situations. 2021 FFCRA Update.