Nannychex
Household Payroll and Tax Experts
Since 1995
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Coronavirus COVID-19 Information

The coronavirus COVID-19 outbreak has resulted in an unsettling time for us all.  As the pandemic continues, we want to assure you that NannyChex is operating normally.  We are monitoring the outbreak and following the guidance of the Centers for Disease Control and Prevention (CDC) and state/local health agencies.  We have implemented guidelines to keep our employees safe and mitigate current health risks.  As an essential service, we will continue to process pay checks normally and file payroll taxes promptly.  We are maintaining our normal business hours and continuing our exceptional client responsiveness by both phone and email. 

We wish you and your loved ones safety and good health. 

We're here to help!

If you have furloughed or laid off your employee or are considering this action or if you are interested in the options that are available for employers, please call us at 877-626-6924 or email support@nannychex.com.  Unfortunately, there is not a “one size fits all” solution for employers or employees who are impacted by COVID-19, but we are here to help you make an informed decision based on your individual circumstances. 

Keep reading for an overview of the options that may be available:

Unemployment Insurance

Household employees who have had their hours reduced or who have been furloughed or laid off may be eligible for unemployment benefits.  The unemployment program is funded by state and federal unemployment taxes which are paid by the employer (with additional employee taxes in some states) while the employee is working. 

Each employee must apply for unemployment benefits through the state.  Each state has its own requirements for eligibility, but generally an individual must have been recently employed and earned a minimum amount of wages and/or worked for a minimum amount of time.  The application process and computation of benefits varies by state, but generally, unemployment insurance temporarily replaces a portion of lost wages for up to 26 weeks.  Eligible individuals whose hours were reduced or who lost employment through no fault of their own (ie they were not terminated for cause) generally qualify for benefits.

The CARES Act and Expanded Unemployment Benefits

The Coronavirus Aid, Relief, and Economic Security (CARES) Act expanded unemployment.  The program made more individuals eligible for unemployment benefits including providing COVID-19 specific reasons for reduced hours or job loss.  Additionally, the CARES Act provided an additional $600 per week payment of Pandemic Unemployment Compensation to eligible individuals for the duration of the worker's benefits eligibility until July 31, 2020.

Resources

Each state continues to update their website with information on their unemployment process and useful information for employers, employees, and unemployment applicants.  Please contact NannyChex if you are unable to locate your state's unemployment website or see below.  The federal government also provides some information on the CARES Act and unemployment during COVID-19:

US DOL:  Find Each State's Unemployment Insurance Office

US DOL:  Unemployment Insurance Relief During COVID-19

US Congress:  Coronavirus Aid, Relief, and Economic Security Act (CARES)

 

Families First Coronavirus Response Act (FFCRA)

Under certain circumstances related to COVID-19, the Families First Coronavirus Response Act (FFCRA) mandates that household employees paid after April 1st who are unable to work are eligible for:

Up to two weeks (80 hours, or a part-time employee's two week equivalent) of paid sick leave paid at:

-100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total; 

-2/3 for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total; and

-Up to 12 weeks of paid sick leave and expanded family and medical paid leave paid at 2/3 for qualifying reason #5 below for up to $200 daily and $12,000 total.

Qualifying Reasons for Leave Related to COVID-19

An employee is entitled to take leave related to COVID-19 if the employee is unable to work because the employee:

1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;

2. has been advised by a health care provider to self-quarantine related to COVID-19;

3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;

4. is caring for an individual subject to an order described in (1) or self quarantine as described in (2);

5. is caring for his or her child whose school or place of care is closed (or child care provider is unavailable) due to COVID-19 related reasons; or

6. is experiencing any other substantially-similar condition specified by the U.S. Department of Health and Human Services

Paid Sick and Family Leave Tax Credits

Employers who are not exempt from this law are entitled to a tax credit equal to the sick leave and/or family medical leave wages paid to an employee while out of work due to qualifying reasons related to COVID-19.

Resources

The federal government continues to update information on the FFCRA including its application for household employers, for more information on the FFCRA, please see below:

US DOL:  Families First Coronavirus Response Act Questions and Answers

US Congress:  Families First Coronavirus Response Act

IRS:  COVID-19 Related Tax Credits for Paid Leave