Phase II: The Families First Coronavirus Response Act

On March 18, President Trump signed the Families First Coronavirus Response Act (H.R. 6021) into law. This law provides timely, temporary, and targeted relief to American families and workers who need help right now.

This explainer breaks down how it helps those who need it: sick leave, family leave, emergency unemployment insurance, and healthcare.

Payroll Credit for “Qualified Sick Leave Wages”

Certain businesses are now required to provide 10 workdays of additional paid sick leave to full-time employees and the prorated amount for part-time employees who are impacted by the coronavirus.

The leave will work in one of two ways for employees:

• If you have to take leave because you are self-quarantined, sheltering in place, or have symptoms of COVID-19: you will be paid your full wages. You can receive up to $511 per day (total amount: $5,110).
• If you have to take leave because you are caring for sick individuals or watching your children who aren’t in school or childcare: you will be paid two-thirds of your full wages. You can receive up to $200 per day (total amount: $2,000).

As for employers, they will be compensated for 100 percent of the paid sick leave wages given to their employees, through tax credits.

• If your business has fewer than 500 employees, you are eligible for full compensation. If your business has fewer than 50 employees, you can be exempt entirely from providing additional leave.
• If you are self-employed or a gig worker, you are eligible for full compensation.
• For everyone: the tax credits are no longer available December 2020.

Payroll Credit for “Qualified Family Leave Wages”

In addition to 10 days of paid sick leave, certain businesses are also required to give 10 weeks of paid family leave to their employees.

This works in a similar way to paid sick leave: If you have to take family leave because you are caring for a child whose school or childcare is closed, you will be paid two-thirds of your full wages. You can receive $200 per day (total amount: $10,000).

But there is an important difference: Before using paid family leave, you need to use 10 days of another type of leave, whether it is unpaid or paid. Using your additional paid sick leave is one acceptable option.

As for business owners, you will be compensated for 100 percent of the paid family leave wages given to your employees, through tax credits.

• If your business has fewer than 500 employees, you are eligible for full compensation. If your business has fewer than 50 employees, you can be exempt entirely from providing additional leave.
• If you are self-employed or a gig worker, you are eligible for full compensation.
• For everyone, the tax credits are no longer available December 2020.

A unique case: if you are an emergency responder or a frontline healthcare provider, you might be excluded from receiving additional paid family leave under this law. This reflects our society’s overwhelming and unprecedented need for your expertise for the duration of this health crisis.

Emergency Unemployment Insurance

If you lose your job because of the coronavirus, you should not lose hope. The federal government is working with states to strengthen emergency unemployment insurance so that you and your families can get through this crisis.

Specifically, this law provides $1 billion to states in emergency grants. Here is how that money affects you:

• Regardless of where you live, $500 million is being made immediately available so that local agencies can start to make it easier for you to know about and actually access unemployment insurance.
• If you live in a state where unemployment increases by 10 percent or more, there is an additional $500 million available to local authorities, so long as they take even more action to make it easier for you to access unemployment insurance.

States can also temporarily waive work search and one-week waiting period requirements, create “Short time compensation” (work-sharing) programs so individuals can receive partial unemployment benefits to offset the wage loss, and draw on 100 percent federally financed Extended Benefits, which provide an extra 26 weeks of unemployment benefits.

Healthcare

Among its most important effects, this law makes it free for all Americans to get a coronavirus test, regardless of where you live or who your healthcare provider is. Insurance or no insurance, private or public plan, active duty or veteran — — if you get tested for coronavirus, it will not cost you a dime.

Free testing means no cost-sharing: no deductibles, no copayments, and no coinsurance. In other words, no barriers for any American to get tested for the duration of the crisis.

This law also takes additional steps to improve our public health system and deliver care to those who need it most. For instance, this provision will allow seniors to talk to their doctors over Skype so they can avoid visiting health care settings where they are at higher risk of contracting COVID-19. Providers will be able to bill Medicare for these video visits.