Woodstock Accounting Firm 770-591-8505

Paid Sick Leave Payroll Tax Credit

The employer must provide paid sick leave if the employee is unable to work or telework due to a need for leave because:  1) The employee is subject to a federal, state or local quarantine or isolation order related to coronavirus, 2) A health care provider advised the employee to self-quarantine due to concerns related to coronavirus, 3) The employee is experiencing symptoms of coronavirus and seeking a medical diagnosis, 4) The employee is caring for an individual who is subject to an order described in #1 or an advisory described in #2, 5) The employee is caring for the employee’s son or daughter due to closure of school or place of care, or the childcare provider of such son or daughter is unavailable due to coronavirus precautions, or 6) The employee is experiencing any other substantially similar condition to be determined.

 

Under #1, #2, or #3 above, the Employee receives up to 2 weeks of paid sick leave at 100% of the employee’s pay, and the Employer would receive a 100% payroll tax credit for qualified sick leave wages, but the credit may not exceed $511 for any day (or any portion thereof) for which the employer pays the employee sick time.

 

Under #4, #5, or #6 above,  the Employee receives up to 2 weeks of paid sick leave at 2/3rd of the employee’s pay, and the Employer would receive a 100% payroll tax credit for qualified sick leave wages, but the credit may not exceed $200 for any day (or any portion thereof) for which the employer pays the employee sick time.

 

The maximum number of creditable paid sick leave days is 10 days per employee per calendar year.