How to determine the amount of leave wages for which an eligible employer may receive credit?
751 views | Last modified 7/6/2020 9:24:48 AM EST | Added by TaxBandits Team

Whether it is the qualified sick leave wages or the qualified family leave wages, an eligible employer may receive credit equal to 100% of: 

•  Qualified leave wages it pays its employees.
•  Qualified health plan expenses (to provide and maintain a group health plan) allocable to those wages.
•  Employer’s share of Medicare tax on the qualified leave wages.  

Now, for qualified sick leave wages, the rate of payment is determined as follows:

•  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. 

 
Likewise, for qualified family leave wages, an eligible employer is required to pay an amount equal to at least two-thirds of the employee’s regular rate of pay, multiplied by the number of hours the employee otherwise would have been scheduled to work, not to exceed $200 per day and $10,000 in the aggregate for the calendar year.