New tax credits available to businesses affected by coronavirus

The IRS has recently begun offering 3 new tax credits for businesses that can show they’ve been negatively impacted by coronavirus shutdowns.

1. Employee retention credit – designed to incentivize employers to retain employees. This credit is a 50% refund of up to $10,000 in payroll expenses. Most businesses and nonprofits are eligible, but not those that receive small business loans.
2. Paid sick leave credit – designed to give a break for employers that have employees who are unable to work because of quarantine. This credit is a 100% refund on a maximum of 80 hours at $511 per day per employee (max $5,110 per employee).
3. Family leave credit – designed to give a break for employers that have employees who are unable to work because they’re caring for a family member (for example, a sick relative or a child that doesn’t have childcare services available). This credit grants employers a 100% refund of up to $10,000 per employee over a period of 10 weeks (66% of the employee’s regular pay, up to $200 per day).

Visit the IRS.gov for details on how to apply.