Dispatch #10 - Families First Coronavirus Response Act (FFCRA)
This is my current understanding of the Families First Coronavirus Response Act (FFCRA). I will update this bulletin and the full text page as I learn more, including the changing calculus for contractors, if any, based on the new $2 trillion stimulus package.
The law goes into effect on April 1st and runs through December 31st, so it will apply to the employees you rehire when you’re back to work;
Your company could end up fronting a large amount of wages, so include those in your cash flow forecast, as well as when you expect to get the money back from the IRS;
Take time to properly prepare, even if it means your company’s not “live” by April 1st;
Consult with an HR consultant, attorney, or other qualified expert. Tell them what your business intentions are with respect to the FFCRA and ask them to help you develop a strategy to achieve them;
Someone on your staff needs to master the details of the programs, and your payroll team needs to track payouts and reimbursements under this Act;
Tell employees about it.
Much more detail and links to further reading are included at this full-length post we created about the topic. I'd also encourage you to download this FFCRA flyer provided by Glen Drouin and the team at Harbor HR.
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.