HR 6201 and Payroll: What You Need To Know


Congress has passed HR 6201, an important piece of legislation intended to address the economic impacts of the COVID-19 pandemic. 6201 will provide leave benefits, including paid sick leave options for those working for employers with less than 500 employees.

How Will This Impact Small Business?

The government is taking these drastic steps to help businesses with new tax credits to help with costs relating to paid emergency and sick leave benefits, in addition to giving credits for any health plan expenses associated with emergency and sick leave pay.

Eligible employees taking emergency paid leave are entitled to have their jobs restored when the leave commenced or able to obtain a comparable position with their employer. 

H.R. 6201 places limits on this rule for employers with less than 25 employees. Should an employee take emergency leave, the employer is not obligated to return the employee to their position if:

  • The position is no longer available due to changes regarding the employer’s economic or operating condition that would affect employment and were directly caused by the coronavirus pandemic;
  • The employer makes a “reasonable effort” to return the employee to an equivalent position; and
  • Should these efforts fail, the employer can make an additional effort to contact the employee should a similar position open. A “contact period” with a one-year window beginning on the earlier of either (a) the date in which the employee no longer needs to take a leave to care for a child or (b) 12 weeks after the employee’s paid leave commences.

When Does This Take Effect?

The requirements put in place under H.R. 6201 are in effect 15 days after the legislation is enacted and go through December 31, 2020.

The next several months will be tough for all of us. PayWow is here to answer your questions about how this will impact your payroll. Please don’t hesitate to contact our Support team with your questions or concerns.

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