Answers to COVID-19 Questions Our Clients Are Asking
We’ve compiled a list of answers to COVID-19-related questions frequently asked by our clients. This Q&A was sourced from the questions asked on our COVID-19 Employer Q&As webinar as well as questions that our HR and legal partners at Synergy Human Resources are responding to through our Value-Added Services Hotline.
Disclaimer: The U.S. government continues to further define its guidance related to COVID-19 laws. The answers outlined on this webpage are provided by North Risk Partners in partnership with its value-added service partners at Synergy Human Resources based on current information and government guidance available. Employers should always use the latest electronic versions of government Q&As when looking for answers to questions in real time.
1. What employers are required to provide sick and family leave wages for qualified reasons under the Families First Coronavirus Response Act (FFCRA)?
Businesses and tax-exempt organizations that have fewer than 500 employees are required to provide these wages under FFCRA beginning April 1, 2020 through Dec. 31, 2020. Because of the requirement, these businesses and organizations are eligible for refundable tax credits for wages paid for one of six qualifying reasons for leave. To learn how the “fewer than 500 employees” threshold is determined, reference no. 2 on the DOL’s Q&A.
2. For employers with under 50 employees, what exemption to the paid leave requirements under FFCRA may be available?
Employers with under 50 employees, including religious and nonprofit organizations, MAY be exempt from the emergency paid sick leave and extended FMLA requirements for ONLY reason no. 5 (school and childcare closures). Learn more about how an employer may claim this exemption >
3. What are the six qualifying reasons for leave under FFCRA?
These reasons can be found on the DOL’s website here (scroll to middle of webpage). See answer to question no. 8 below for examples of reasons for leave that DO NOT CURRENTLY QUALIFY for the refundable tax credits under FFCRA.
4. An employee has symptoms of an illness, how does an employer determine if it is COVID-19?
The employer should advise the employee to seek medical advice from their health care provider. An employee may be paid under the Employee Paid Sick Leave (EPSL) provision if proper documentation of advice from a health care provider to self-quarantine is provided to the employer.
5. What is the DOL’s definition of a “health care provider” who is qualified to advise an individual to self-quarantine?
Per the U.S. Department of Labor (DOL): The term “health care provider,” as used to determine individuals whose advice to self-quarantine due to concerns related to COVID-19 can be relied on as a qualifying reason for paid sick leave, means a licensed doctor of medicine, nurse practitioner, or other health care provider permitted to issue a certification for purposes of the Family Medical Leave Act (FMLA).
6. How does the DOL define “proper documentation” of advice from a health care provider to self-quarantine?
Reference no. 44 on the IRS’ FAQs on COVID-19-related tax credits to support your employee with submitting the appropriate written request. This documentation will allow the employer to substantiate its eligibility for the sick or family leave refundable tax credits. Additional employer recordkeeping guidance is provided in no. 45-46 on the IRS’ FAQs.
7. How long should an employee stay at home if they have symptoms of COVID-19?
Employee should follow recommendations of their health care provider and follow Center for Disease Control and Prevention guidelines. Note: Without proper documentation of advice from health care provider to self-quarantine or proper documentation of another qualifying reason for leave, the employee’s situation does not make the employer eligible for FFCRA paid sick and/or family leave wage refundable tax credits.
8. What are examples of reasons for leave that DO NOT CURRENTLY QUALIFY for the refundable tax credits under FFCRA?
- Due to symptoms of illness, employee decided to self-quarantine without providing the employer with proper documentation of advice they received from health care provider to self-quarantine.
- Employee is sent home (without teleworking option) after employer (not a health care provider) deems employee at high risk for COVID-19 complications or because employee was exposed to someone with the virus. Employee may decide to apply for unemployment because work is no longer available to them.
- Employee self-isolates without ability to work from home because they are fearful of contracting COVID-19.
9. Can FFCRA paid sick and family leave be taken intermittently?
The DOL’s Q&As 20, 21, and 22 address guidance related to intermittent leave.
10. Why would an employee choose to take the first two weeks of FFCRA family leave unpaid rather than use the FFCRA paid sick leave for that period?
The employee may choose not to use the paid sick leave benefit during the initial 10-day unpaid period of FFCRA paid family leave. Doing so would make FFCRA paid sick leave available to the employee in the future should they need it for a qualifying reason.
11. What relief is available to church workers who are no longer receiving wages due to state mandated closures (e.g., Stay at Home Order)?
For religious institutions that are exempt from unemployment laws, such as churches, affiliated religious organizations, religious schools and charities with fewer than four employees, the employees of such charities are not eligible for receiving unemployment benefits; thus, these charities would not receive any reimbursement unless they voluntarily elect to self-insure. If a religious institution self-insures, the CARES Act reimburses the religious institution for half of its costs of unemployment benefits provided to laid-off employees.
12. When do FFCRA paid sick and family leave wages apply versus unemployment insurance?
Employees are only eligible for paid sick and family leave wages if they have work available to them and are unable to work due to a qualified reason pertaining to COVID-19 (see question no. 3 above for a resource outlining the six qualifying reasons for FFCRA paid leave).
If an employee decides to take time off from work due to a reason that does not qualify for the sick and family leave pay (such as fear of contracting the virus), the employer should follow its current company policies regarding paid time off and unpaid leave of absences.
When laid off or furloughed, an employee should apply for unemployment insurance.
13. Is an employer required to pay out an employee’s paid time off if they are laid off?
Employers should follow their company policies regarding layoff and benefits.
14. What happens to people who are temporary furloughed and not laid off? Are they still eligible for other benefits while furloughed?
Furloughed employees may be eligible for company benefits, depending on a company’s policies and programs. Employees on furlough (and also those who are laid off) are not eligible for FFCRA paid sick and family leave programs. An employee must be actively working or have work available to them to be eligible for FFCRA programs.
15. If an employer reduces a worker’s wages due to lack of work available, what relief is available?
An employee experiencing a reduction of wages may be eligible for unemployment insurance benefits. Compensation for reduced wages is not covered by FFCRA paid sick and family leave programs.
16. What is required for the employee rights notice regarding FFCRA? Is posting the DOL poster enough or does it need to be sent to each employee individually?
All employers required to comply with paid sick and family leave provisions as part of FFCRA must notify their employees of their rights under the act (see question no. 1 above for guidance on which employers are required to comply). Links to the FFCRA Employee Rights poster in multiple languages can be found on the DOL’s website here »
Post the notice in a highly-viewed area within your worksite. If you have staff working remotely, email the poster to each employee.
17. What is best practice for employers related to imposing self-isolation for employees who have traveled to a high-risk area?
Employers can establish a consistently applied policy about self-isolation and travel OR they can rely on the employee's health care provider to advise the need to self-isolate. If a health care provider has directed them to isolate and the absence is on or after April 1, 2020 (AND the employee can’t work from home), then the employee will be eligible for FFCRA paid sick leave that the employer can be reimbursed for on their taxes if appropriately documented (see question no. 6 above for more on required documentation). If employee is not advised from a health care provider to self-isolate and is being asked to stay home by the employer without a teleworking option, that employee can apply for unemployment.
18. How should an employer respond to an employee who does not want to work due to fear of contracting the virus and infecting someone at home who is at high risk of COVID-19 complications?
Options to consider: May the employee work remotely? May the employee work an off-schedule or over the weekend? Is the employee eligible to take company time off benefits or an unpaid leave of absence? An employee’s situation is only eligible for paid sick leave to care for an individual who genuinely needs the employee’s care.
19. Are employers of health care providers or emergency responders subject to the FFCRA paid leave requirements?
Employers of health care providers or emergency responders may elect to exclude such employees from eligibility for the leave provided under FFCRA. Employer should make the decision to exempt or not and inform staff appropriately.
20. Is an employer required to pay regular overtime for the 80 hours of FFCRA paid sick and family leave?
FFCRA paid family leave requires an employer to pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week. The FFCRA paid sick leave requires that leave be paid only up to 80 hours over a two-week period. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of paid sick leave in the first week and 30 hours of paid sick leave in the second week. In any event, the total number of hours paid under the paid sick leave is capped at 80. Keep in mind the daily and aggregate caps placed on any pay for both sick and family leave provisions (see no. 7 on DOL’s Q&As for guidance on these caps). Please note that a premium for overtime hours is not required for either sick or family leave provisions.
21. How does an employer determine an employee’s regular rate of pay for FFCRA paid sick and family leave provisions, especially if the employee is part-time and works irregular hours?
For employees with fluctuating hours (both part-time and full-time), use the six-month look-back process. For purposes of the FFCRA, the regular rate of pay used to calculate paid leave is the average of an employee’s regular rate over a period of up to six months prior to the date on which an employee takes leave. If the employee has not worked for the company for six months, the regular rate used to calculate the employee’s paid leave is the average of the regular rate of pay for each week the employee has worked for the company. Keep in mind the daily and aggregate caps placed on any pay for both sick and family leave provisions (see no. 7 on DOL’s Q&As for guidance on these caps).
22. How does an employer calculate regular rate of pay for an employee who is 100% commissioned (outside sales)?
See answer to question no. 21 above.
23. How should employers track payments made to employees on FFCRA sick and/or family leave?
Companies should set up a separate pay code in their payroll system for these payments.
24. Beyond the FFCRA paid sick and family leave refundable tax credits, what financial relief is available to small to mid-size businesses and their owners?
Employers should visit their state’s unemployment insurance website (see list at the end of this document) and explore COVID-19-related financial assistance programs available through the U.S. Small Business Administration. The CARES Act (signed into law on March 27, 2020) includes a new benefit program for workers who are unemployed as a result of COVID-19 who are NOT eligible for regular unemployment.
25. Will unemployment benefits be extended beyond what workers could typically receive?
The CARES Act will provide eligible employees an extension of unemployment benefits for up to 13 weeks, plus $600 per week in unemployment benefits in addition to what they are eligible for under existing state programs. This boosted payment will last for approximately four months until its current expiration date of July 31, 2020.
26. Will unemployment benefits be extended beyond what workers could typically receive?
The CARES Act will provide eligible employees an extension of unemployment benefits for up to 13 weeks, and an additional $600 per week in unemployment benefits in addition to what they are eligible for under existing state programs. This boosted payment will last for approximately four months until its current expiration date of July 31, 2020.
27. Is an employee eligible for both FFCRA and unemployment in the same timeframe?
No, unemployment insurance is geared to support an employee who is not working. The benefits paid under FFCRA are eligible to actively working employees.
28. If an employee resigns willfully from their position, are they eligible for unemployment under FFCRA?
Generally, a voluntary quit is not eligible for unemployment.
Disclaimer: The U.S. government continues to further define its guidance related to COVID-19 laws. The answers outlined on this webpage are provided by North Risk Partners in partnership with its value-added service partners at Synergy Human Resources based on current information and government guidance available. Employers should always use the latest electronic versions of government Q&As when looking for answers to questions in real time.