September 8, 2020
How the New Families First Coronavirus Response Act Affects Your Dental Practice
Six months later, rules around the pandemic are still constantly evolving and adapting to take care of businesses and their employees. To add to the list, the new U.S. Families First Coronavirus Response Act provides a safety net of emergency paid sick leave for qualified staff members. Here’s what your dental practice needs to know before the temporary provisions expire on December 31, 2020.
Those employed for at least 30 days are eligible for two weeks of paid sick leave if they are ill, quarantined, show symptoms, and seek diagnosis or preventive care for COVID-19, including those who have to take care of a family member. It also provides up to 12 weeks of paid family leave for those caring for children under 18 whose schools or daycare centers have closed because of the pandemic.
Those employees who qualify will earn the full amount of their regular pay up to a maximum of $510 a day for two weeks or $5,110 total. Staff members caring for a sick family member or children whose schools or daycare centers are closed due to the pandemic will receive two-thirds of their usual pay up to a daily limit of $200.
The Department of Labor has the authority to exempt small businesses with fewer than 50 employees if this would jeopardize the viability of the business going forward. The American Dental Association is lobbying for an exemption for dental practices since operations have likely been scaled back to only include emergency care and results could cost up to $9,600 per employee.
The new law requires the full amount of sick leave pay granted to be reimbursed within three months through a payroll tax credit to the practice to offset the cost. This reimbursement will also include any practice contribution for staff health insurance premiums paid during the leave, which are fully refundable.
Contact the experts at Professional Transition Strategies to learn how your practice can make the most financial sense during these uncertain times.