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UPDATED: President Signs Sweeping Congressional Action In Response to Coronavirus

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From Lexology, Laura Lawless and Daniel B. Pasternak report that the Families First Coronavirus Response Act, signed by the President on March 18, 2020, includes tax credits for self-employed workers. Laura and Daniel write:

Self-employed Tax Credit

  • The Act provides a corresponding credit for self-employed business owners for both sick leave and FMLA leave. The sick leave credit is limited to the sick-leave equivalent amount, which is equal to the number of days that the days that the individual is unable to perform services with respect to which such individual would be entitled to sick leave multiplied by the lessor of (1) $200 ($511 in the case of any day any portion of which is paid sick time that is either (1) a day the individual is subject to a Federal, State or local quarantine or isolation order related to COVID-19, (2) a day the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID-19, or (3) a day the individual is experiencing symptoms of COVID-19 and seeking a medical diagnosis) or (2) 67% (100% if the individual has a leave that qualifies for the $511 increase in the described herein)) of the average daily self-employment income. The FMLA credit is available for a maximum 50 days in the amount of the lesser of: a) $200, or b) 67% of the average self-employment income applicable to the business owner.

Read the full story at UPDATED: President Signs Sweeping Congressional Action In Response to Coronavirus (US) – Lexology

The Families First Coronavirus Response Act provides both sick leave and Family and Medical Leave Act (FMLA) leave for self-employed workers.

Sick Leave Days

The sick leave credit is available for 10 days.   

Sick Leave Rate Limitation. The sick leave credit is limited to the sick-leave equivalent amount, which is equal to the number of days that the days that the individual is unable to perform services with respect to which such individual would be entitled to sick leave multiplied by the lessor of

1. $200 ($511 in the case of any day any portion of which is paid sick time that is either

  • a day the individual is subject to a Federal, State or local quarantine or isolation order related to COVID-19,
  • a day the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID-19, or
  • a day the individual is experiencing symptoms of COVID-19 and seeking a medical diagnosis) or

2. 67% (100% if the individual has a leave that qualifies for the $511 increase in the described herein)) of the average daily self-employment income.

Self Employed FMLA Tax Credit Limitations

FMLA Days Limitation. 50 Days. The FMLA credit is available for a maximum 50 days

FMLA Rate Limitation. The FMLA credit is available for a maximum 50 days in the amount of the lesser of:

  1. $200, or
  2. 67% of the average self-employment income applicable to the business owner.
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