FFCRA Compliance: Consideration of Layoffs

Some employers have been making the decision to preemptively lay off portions of their staff in part to avoid having to comply with providing the paid leave required by the FFCRA.  While we do not necessarily recommend this approach, it may be necessary for employers who are not eligible for an exemption to the FFCRA, and the advanced payment of these benefits would compromise cash flow to the point that the business would not be able to meet its obligations.

If your company must implement layoffs as a result, these must be done prior to April 1, 2020 which is the effective date of the FFCRA in order to avoid mandatory compliance.

Written by Matt Cleare, CPA, CGMA, Davis & Hodgdon Associates CPAs

With offices in Williston and Rutland Vermont, Davis & Hodgdon Associates CPAs has been assisting Vermont’s residents and entrepreneurs with their tax planning and strategizing needs for more than 30 years. Call our office at 802.878.1963 (Williston) or 802.775.7132 (Rutland) today.