Pub. 5 Issue 3

21 regardless of how long the employee has been at their job, and employers cannot require employees to use other paid leave before using paid sick time. Employees would be paid based upon the normal number of hours they are scheduled to work, which wouldn’t exceed $511 per day or $5,110 total if they are subject to items 1–3 above. Employees’ pay for sick time wouldn’t exceed $200 per day or $2,000 total if they are subject to items 4 and 5 above. The bill prohibits employers from requiring a worker to find a replacement to cover their scheduled work hours, and makes it unlawful to discharge or discriminate against employees for taking paid sick leave or filing a complaint against their employer over the use of paid sick leave. Finally, any remaining paid leave at the end of the year would not carry over to the following year. Employer Tax Credits for Sick & Medical Leave H.R. 6201 provides for payroll tax credits to employers to cover 100% of the cost of providing paid leave to employees under the bill’s sick leave and family leave programs. The payroll tax is currently set at a rate of 6.2% of wages and is paid by both employers and employees. The employee share of the tax will not be impacted by the bill. The bill’s sick leave tax credit for each employee would apply to wages of up to $511 per day while the employee is subject to items 1–3 above, or $200 per day if the employee is subject to items 4 and 5 above. The aggregate number of days taken into account per employee is not permitted to exceed the excess of ten over the aggregate number of days taken into account for all preceding calendar quarters. The bill makes the tax credits refundable if they exceed the amount the employer owed in payroll tax, and the credits will be in effect for wages through the end of 2020. Conclusion H.R. 6201 has been signed into law by President Trump and serves as another attempt by lawmakers to expand access to care related to the coronavirus. Leaders in Washington have now turned their attention to shor i ng up t he f i nanc i a l ma rke t s and stabilizing various sectors of the economy. Cur rently, Congress and the White House are working on a third coronavirus package that will provide relief for the travel and leisure industries, provide direct payments to Americans, and inject much-needed dollars into the economy. We will continue to monitor the progress of the third coronavirus package and any subsequent developments.  Lance, Soll & Lunghard, LLP | CPAs & Advisors | lslcpas.com | (714) 672-0022 Brea Sacramento “We have a fantastic relationship with the LSL team. They keep our interests top of mind and maintain a positive reputation in the industry.” Santa Ana -Craig Whetter, President, David Wilson Automotive Group (relationship since 1983) Donald Slater, CPA Automotive Services Partner donald.slater@lslcpas.com Mike Mangold, CPA Automotive Services Partner mike.mangold@lslcpas.com David Myers, CPA Automotive Tax Partner dave.myers@lslcpas.com  RELIEF BILL — continued from page 20