How to determine the amount of leave wages for which an eligible employer may receive credit?
278 views | Last modified 9/24/2020 2:57:04 PM EST | Added by ExpressEfile Team

Applicable To
Form 941 Form 1099 / W-2 Form 2290

An eligible employee, irrespective of whether he/she takes a qualified sick or family leave will receive a credit equal to 100% of 

  • Qualified leave wages paid to the employee.
  • Qualified health plan expenses entitled to the employee.
  • The employer’s share of Medicare tax on the qualified leave wages.

The qualified sick leave wages will be applicable only at a certain rate at the following conditions.

  • The employee doesn’t work or telework because of his/her health needs due to the effects of COVID-19, the employee must be paid at their regular rate of the pay, or, if higher, the federal minimum wage or any applicable state or local minimum wage, up to $511 per day and $5,110 in the aggregate.
  • The employee doesn’t work or telework because he/she takes care of the health needs of another person due to the effects of COVID-19, the employee must be paid at two-thirds of their regular rate of the pay, or, if higher, the federal minimum wage or any applicable state or local minimum wage, up to $200 per day and $2000 in the aggregate.

Similarly, for qualified family leave wages, an eligible employee is entitled an amount equal to two-thirds of their regular rate of pay multiplied by the number of hours the employee would have worked until it reaches a maximum of $200 per day or a total of $10,000 for a calendar year.
 

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