No. Paid leave under the FFCRA was in addition to an employee’s other leave entitlements and therefore, an FFCRA-like voluntary plan in 2021 must provide the same to claim the tax credit.
While an employer may not claim the tax credit by requiring an employee to use his or her paid vacation, personal, medical or sick leave, if the employee and employer agree, existing paid leave can be used to supplement FFCRA-like leave, up to the amount of the employee’s normal earnings, without jeopardizing the tax credit.