NEW YORK - April 3, 2020 — Justworks, the nation’s fastest-growing HR technology company, announced the launch of a new tool to help its customers navigate the COVID-19-related paid leave newly mandated by the Families First Coronavirus Response Act (FFCRA). Congress passed the FFCRA in response to the COVID-19 pandemic. Its paid leave provisions went into effect on April 1, 2020. Small businesses across the country are already using the tool to schedule and provide paid leave to their employees who have been impacted by COVID-19, as well as automatically claim the applicable tax credits directly in the Justworks platform.
The FFCRA requires businesses with fewer than 500 employees to provide their employees with paid leave for qualifying reasons related to COVID-19. The FFCRA also allows employers to claim payroll tax credits to cover the cost of this required leave. With its rapid legislative response, however, Congress unintentionally created a massive administrative burden downstream for the employers trying to implement these new worker protections. With Justworks, businesses can seamlessly schedule COVID-19-related paid leave, keep their employees on payroll, and claim the applicable tax credits offered by the government to pay for their leave in full.
“We built this tool into our product to give entrepreneurs the best self-service experience and to empower them to take care of their people in this challenging time,” said Joe Blossom, Director of Product Management & Delivery at Justworks. “Our goal was to build features that help all types of businesses navigate the new COVID-19-related legislation seamlessly. From calculating payment amounts to allowing an employer to top-up an employee's FFCRA leave pay to 100%, this tool does all the complex work for our customers.”
Justworks enables customers to schedule and track the Emergency Paid Sick Leave and Emergency Family and Medical Leave available under the FFCRA for any of their eligible employees. The new tool ensures that employees on leave are being paid accurately and employers are paid back for eligible leave wages through FFCRA tax credits. This feature will help small businesses remain compliant with the new leave requirements from day one.
“The people who use our platform are our top priority. With this new tool, we are delivering rapid access to a critical government program. It will help our customers continue to run their business with confidence and keep their teams intact. As difficult as it is to imagine today, this crisis will pass. When it does, businesses and employees that count on Justworks will have been able to take advantage of the FFCRA from day one and they will be as ready as possible to seize new opportunities,” said Isaac Oates, Founder and CEO of Justworks. “Building this tool in such a short amount of time is a tremendous accomplishment. Our team has risen to the challenge at a time when our customers need us most. More so now than ever, the software we build can have a real positive impact on peoples’ lives.”
The FFCRA was signed into law on March 18, 2020, and its paid leave provisions went into effect on April 1, 2020. The new FFCRA paid leave tool in Justworks went live for all customers on April 1, 2020. More information on the tool and an explanation of how it works can be found online in the Justworks help center. A broader collection of COVID-19 resources for employers can be found in the COVID-19 Resource Center.
About Justworks: Justworks makes it easier to start, run, and grow a business. Founded in 2012, Justworks, the fastest growing HR technology company, is a modern support system for work and life. With Justworks, entrepreneurs and their teams get access to big-company benefits, automated payroll, compliance support, and HR tools—all in one place. By combining the power of a Professional Employer Organization (PEO) with expert 24/7 customer service and a simple and intuitive platform, Justworks gives teams of all sizes the confidence to work fearlessly. To learn more, visit justworks.com, follow us on Twitter @JustworksHR and Instagram @Justworks_HR.