TaxBandits Knowledge Base

How to determine the amount of leave wages for which an eligible employer may receive credit?

Eligible employers can receive a credit equal to 100% of:

• Qualified leave wages paid to employees.
• Qualified health plan expenses related to maintaining a group health plan for those wages.
• The employer’s share of Medicare tax on the qualified leave wages.

Qualified Sick Leave Wages Payment Rates

• For employee health needs: If an employee cannot work due to their own health issues related to COVID-19, they are entitled to their regular pay (or the higher of the federal, state, or local minimum wage) up to $511 per day and $5,110 in total.
• For caregiving: If an employee needs to care for others due to COVID-19, they are entitled to two-thirds of their regular pay (or the higher minimum wage) up to $200 per day and $2,000 in total.
   

Qualified Family Leave Wages
Eligible employers must pay at least two-thirds of the employee’s regular pay for family leave, not exceeding $200 per day and $2,000 in total for the calendar year, based on the hours the employee was scheduled to work.