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Employers can grant paid leave for COVID-19
In addition to the relief for employees, businesses can claim two new refundable payroll tax credits for granting paid leave to their employees. The paid sick leave credit and paid family leave credit are available for eligible employers who pay qualified sick leave wages and/or qualified family leave wages from April 1, 2020 through December 31, 2020, and who have fewer than 500 employees.
The paid sick leave credit and the paid family leave credit will immediately and fully reimburse employers for the cost of providing COVID-19 related leave to their employees.
Here is what employees need to know about paid leave under the CARES Act.
Paid sick leave for workers
Employers pay the benefits at 100% of employee's regular pay up to $511 per day and $5,110 in total for the care of employee's own health.
Paid family leave to care for child
With two weeks of paid sick leave and 10 weeks of paid family leave combined, an employee could receive up to a total of 12 weeks up to $12,000 of paid leave to care for a child.
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