As of September 27, 2021, both the federal and the Massachusetts COVID-19 leave laws are set to expire on September 30, 2021, and it does not appear that either the Federal or State legislatures will be extending these laws.
Click here for information on the specifics of the Extension of FFCRA:
FFCRA & the American Rescue Plan
Click here for information on the specifics of Massachusetts COVID-19 Emergency Paid Sick Leave for
COVID-19 Temporary Emergency Paid Sick Leave Program | Mass.gov
If an employer has provided paid leave to one or more employees that qualify for reimbursement under either the Federal or State laws they are eligible to receive reimbursement for eligible wages paid.
If the application of reimbursement has not been made to date, it is not too late.
If an employer filed its quarterly return for the second or third quarter of 2020 or the first and second quarter of 2021 without reporting its eligible paid leave wages and qualified health plan expenses, the employer may file an adjusted quarterly return (typically, Form 941-X) with the IRS to claim the payroll tax credits. In October 2020, the IRS issued a new Form 941-X that contains fields for the FFCRA/Paid Leave credit amounts (lines 9, 10, 28, and 29), along with corresponding instructions for Form 941-X.
If an employer has overreported (and overpaid) its federal payroll taxes, it may choose to apply the credit amount to its current quarterly return or use the claim process to obtain a refund. Generally, an employer may correct overreported taxes on a previously filed Form 941 if the employer files Form 941-X within 3 years of the date Form 941 was filed or 2 years from the date the employer paid the tax reported on Form 941, whichever is later. We do not recommend waiting – employers should act now to preserve and compile their records documenting paid leave and associated health plan expenses and to prepare and file any adjusted returns to claim the available credits.
For employers who voluntarily offer federal Emergency Paid Sick Leave, MA COVID leave may run concurrently with the federally compliant leave, so long as the state mandate is met in full, including 40 hours (or a prorated amount for part-time employees) beginning May 28, 2021. Employers may not seek MA reimbursement for eligible wages that may be reimbursed under the Federal leave program. Each employer should read the FAQs carefully to understand reimbursement opportunities for their specific situation.