What are Qualified Sick Leave Wages?
105 views | Last modified 7/6/2020 9:24:31 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

Qualified sick leave wages are wages that Families First Coronavirus Response Act (FFCRA) requires eligible employers (fewer than 500 employees) to pay eligible employees for periods of leave during which they cannot work or telework for reasons related to COVID-19.  

The leave period considered for qualified sick leave wages is between April 1, 2020, and December 31, 2020. The employer is entitled to a fully refundable tax credit equal to the required paid sick leave. The Emergency Paid Sick Leave Act entitles employees to up to 80 hours of paid sick time. 

If an employee is unable to work or telework due to his or her own health needs for reasons related to COVID-19, an employee is entitled to be paid at their regular rate of pay, or, if higher, the federal minimum wage or any applicable state or local minimum wage, up to $511 per day and $5,110 in the aggregate.
 
If an employee is unable to work or telework because he or she needs to care for others for reasons related to COVID-19, an employee is entitled to be paid at two-thirds their regular rate of pay or, if higher, the federal minimum wage or any applicable state or local minimum wage, up to $200 per day and $2,000 in the aggregate.

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