March 20, 2020

In This Issue
Fast Facts
Congress Passes “Phase Two” Multibillion-Dollar Coronavirus Aid Package
Inside “Phase Three”: The Senate’s Trillion-Dollar Stimulus Package
HHS, CMS and Others Release Guidance and Resources on COVID-19
State Spotlight: New Special Enrollment Periods, Shut-In Mandates, and Prison-Made Hand Sanitizer
Healthcare Happy Hour: Special Guest on COVID-19 Compliance
Did You Miss Our Webinar on ICHRAs and COVID-19?
Register for NAHU Affinity Partner Medcom Benefit Solutions’ Webinar
Applications Are Open for NAHU's Legislative Council
HUPAC Roundup: Primaries Delayed Due to COVID-19, Progressive Beats Moderate in Illinois
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Congress Passes “Phase Two” Multibillion-Dollar Coronavirus Aid Package
On Wednesday, President Trump signed the Families First Coronavirus Response Act into law. The Act includes several provisions to protect American workers and assist employers in providing emergency paid sick leave, as well as paid family leave in the case of school closures, for working families impacted by COVID-19. This is considered to be the second phase in the federal government’s response to COVID-19, and the Senate is currently working on a trillion-dollar package to follow this one.
 
The FFCRA requires employers with up to 500 employees to provide paid sick leave and paid family leave while providing a refundable payroll tax credit to employers to cover 100% of the cost of wages. There is also a refundable income tax credit made available for self-employed individuals. Employers with less than 50 employees that may find these requirements a burden to their business may apply for a hardship exemption from the mandate. Employers must offer two weeks (10 days) of paid sick leave for COVID-19-related reasons. If the sick leave is for an employee who is sick or seeking a diagnosis, the benefit must replace all of the employee's wages up to a maximum benefit of $511 per day. If an employee is caring for another individual who is sick, the benefit must replace at least two-thirds of the employee's wages up to a maximum benefit of $200 per day. The paid sick leave credit offsets 100% of employer costs for providing mandated paid sick leave. The credit also offsets, uncapped, the employer contribution for health insurance premiums for the employee for the period of leave. 
 
Employers must offer 12 weeks of paid family leave for employees who have been employed for at least 30 days with a minor child in the event of the closure of the child's school or place of care. The first 10 days are unpaid, but the employee can overlap this with the 10 days of paid sick leave. This benefit must replace at least two-thirds of the employee's wages up to a maximum of $200 per day. The paid family leave credit offsets 100% of employer costs for providing mandated paid family leave. The credit also offsets, uncapped, the employer contribution for health insurance premiums for the employee for the period of leave. 
 
Under FFCRA, self-employed individuals are provided similar credits as refundable income tax credits in an amount of what self-employed workers would have received if they had been an employee receiving paid leave benefits pursuant to the mandates. For a given day that a self-employed worker could not work, they can claim a "rough justice" tax credit in the amount of their average daily self-employment income for the year. 
 
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