The U.S. Senate passed the Families First Coronavirus Response Act by an overwhelming bipartisan vote and the president quickly signed the legislation into law. The legislation includes many provisions that impact Big "I" members and small businesses.
As the situation with the coronavirus pandemic continues to evolve, the Big “I” knows it is at the top of mind for our members and small businesses throughout the country. It is imperative that Big “I” members take the necessary precautions and follow Centers for Disease Control and Prevention (CDC) guidelines.
On Wednesday, the U.S. Senate passed H.R. 6201, the Families First Coronavirus Response Act, by an overwhelming bipartisan vote and the president quickly signed the legislation into law.
The legislation guarantees free coronavirus testing, establishes paid leave, enhances unemployment insurance, expands food security initiatives and increases federal Medicaid funding. President Trump pushed for a payroll tax cut to be included, but bipartisan opposition on Capitol Hill kept that out of the bill. That proposal may be revisited in follow-up legislation to address the crisis.
Included in the bill are many provisions that impact Big “I” members and small businesses. The legislation requires businesses with fewer than 500 employees to provide 12 weeks of job-protected family and medical leave and two weeks of paid sick leave for coronavirus related reasons. It is important to note that while these mandates are only for businesses with fewer than 500 employees, companies with fewer than 50 employees can request a hardship exemption from these provisions.
The legislation also provides a refundable tax credit equal to 100% of both qualified paid sick and paid family leave by an employer for each calendar quarter. This tax credit can be applied against the employer portion of Social Security taxes. This credit applies to amounts paid with respect to employees who must self-isolate, obtain a diagnosis or comply with a self-isolation recommendation. For employees who are on leave to care for a family member with coronavirus or for a child whose school has been cancelled, a lesser credit applies.
Finally, the Senate has already begun work on a third legislative package. While details are fluid, the focus of this legislation is to ameliorate the economic impact of the crisis and is expected to contain numerous provisions impacting individuals, businesses, targeted industries, and the financial services markets. Of course, the Big “I” government affairs team will continue to provide regular updates.
Joseph Cortina is Big “I” director, federal government affairs, and Wyatt Stewart is Big “I” senior director, federal government affairs.
To help Big “I” members prepare and respond to the coronavirus epidemic, the association created a resource page, which will be updated as the outbreak develops.