Reading Time: < 1 minute(Last Updated On: May 10, 2020)
The IRS has recently begun offering 3 new tax credits for businesses that can show they’ve been negatively impacted by coronavirus shutdowns.
- 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.
- 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).
- 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.
Disclaimer: The information contained in this article is provided for informational purposes only, should not be construed as legal advice on any subject matter and should not be relied upon as such. The author accepts no responsibility for any consequences whatsoever arising from the use of such information.