Tax Credits Available for Voluntary FFCRA Leave Granted Through March 2021

Bowditch & Dewey

The requirement that employers provide paid sick leave and expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA) expired on December 31, 2020. However, the most recent COVID-19 stimulus package, contained in the Consolidated Appropriations Act, 2021, created a voluntary extension of FFCRA leave for time off taken by employees up through March 31, 2021. Accordingly, while not currently required to do so, employers can voluntarily choose to grant employees FFCRA paid leave through March 31, 2021. Employers who choose to provide this voluntary FFCRA paid leave can also apply for and receive tax credits for this leave.

Notably, this new legislation has not increased the total FFCRA leave allotment for employees. Accordingly, employers are not able to receive tax credits for leave granted to employees who already exhausted their FFCRA leave in 2020.


Employers can consult Question Nos. 104 and 105 in the U.S. Department of Labor’s Wage and Hour Division FFCRA Q&A Guidance for information about this voluntary FFCRA leave extension and the expiration of mandatory FFCRA leave. Stay tuned for updates regarding any future legislation extending or altering FFCRA leave.

Written by:

Bowditch & Dewey

Bowditch & Dewey on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.