Millions of Americans are adjusting to new back-to-school and work realities. Many area schools are adopting a mix of in-person and online classes. Similarly, some businesses are using a hybrid approach for the worksite. How do these situations impact your finances? Here are three issues to consider:
Under the Families First Coronavirus Response Act (FFCRA), certain employees are eligible for 10 weeks of emergency family and medical leave (FMLA) at 2/3 of their regular rate of pay, with a cap of $200 per day. You may use this time intermittently as long as you and your employer agree on a schedule. For business, the FFCRA provides dollar-for-dollar tax credits for the paid leave. Note: time off must be used between April 2 and December 31, 2020 and the company size must be 500 or fewer employees.
If you hire a private caregiver at home, say to help you juggle your kids’ online learning and your job, and you pay them at least $2,200 a year, they are considered an employee. That means you must obtain a federal employer ID number, establish a state unemployment insurance account, and pay Social Security and Medicare taxes. You also have other employer responsibilities — like following minimum wage and overtime rules as well as domestic worker protections.
Can those working temporarily, or even permanently from home take a home office deduction? The short answer is no, unless you are self-employed. The Tax Cuts and Jobs Act suspended the employee home office deduction from 2018 to 2025.
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