Tag Archives: tax credits

The IRS Weighs In On What Information An Employer Can Request To Substantiate FFCRA Eligibility

Yesterday the IRS issued some FAQs on the FFCRA.  On the important question of what documentation is needed from the employee in order for the employer to seek tax credits for the paid leave provided under the FFCRA,  the IRS said as follows:

An Eligible Employer will substantiate eligibility for the sick leave or family leave credits if the employer receives a written request for such leave from the employee in which the employee provides:

  1. The employee’s name;
  2. The date or dates for which leave is requested;
  3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
  4. A statement that the employee is unable to work, including by means of telework, for such reason.

In the case of a leave request based on a quarantine order or self-quarantine advice, the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.

In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include the name and age of the child (or children) to be cared for, the name of the school that has closed or place of care that is unavailable, and a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and, with respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care.

While the IRS is the entity that will approve or deny the request for the tax credit, the DOL is responsible for enforcing the FFCRA.  Hopefully, the DOL’s regulations will be consistent on this issue, and it is my expectation that they will be.

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