Payroll Resources
Many businesses that have been impacted by COVID-19 will qualify for new employer tax credits.Sick and Family Leave
As part of sweeping legislation signed into law by President Trump on March 18, 2020, two laws were enacted that provide workers with paid leave for reasons related to the coronavirus (COVID-19) pandemic. One of the new leave provisions, the “Emergency Family and Medical Leave Expansion Act,” allows 12 weeks of partially compensated FMLA leave to care for a child whose school or child care facility has been closed due to COVID-19. The leave applies only to workers who have been employed by their current employer for 30 days.
The other new law providing employee leave, the “Emergency Paid Sick Leave Act,” requires employers to provide 80 hours of paid sick time to employees in specified circumstances, including:
A quarantine or isolation order for the employee or someone the employee is caring for, or medical advice to self-quarantine;
When the employee has symptoms of COVID-19; or
When the employee's child's school or child care facility is closed.
Additional Resources
- Department of Labor FAQs on Sick and Family Leave: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
- IRS FAQs on Sick and Family Leave: https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs
- Department of Labor Notice: DOL FFCRA Employee Notice
Employee Retention Credit
Businesses that that have been partially or fully suspended by governmental orders due to COIVD-19 or businesses that have significant decline in gross receipts compared to 2019 could be eligible for a $5,000 credit per employee. LEARN MORE
Deferral of Payroll Taxes
The CARES Act allows employers to defer the deposit of the EMPLOYER’S share of SOCIAL SECURITY taxes and SELF-EMPLOYED individuals to defer payment of certain self-employment taxes. LEARN MORE
Additional Resources:
Form 7200 Advance Payment of Employer Credits due to COVID-19: https://www.irs.gov/pub/irs-pdf/f7200.pdf
Instructions for Form 7200: https://www.irs.gov/forms-pubs/about-form-7200
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