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Updated IRS Guidance Addressing COVID-19 Relief Employer Tax Credits
Source:
natlawreview.com
- Apr 21, 2020
The IRS recently published guidance on the new refundable employment tax credits available under the Families First Coronavirus Response Act (the “FFCRA”) and the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
Both the FFCRA and the CARES Act provide refundable tax credits to employers for qualified wages paid to employees under circumstances stemming from the COVID-19 pandemic. Eligible employers can receive a refundable tax credit to cover all or some of the cost of mandatory qualified sick leave and qualified FMLA leave payments (collectively, “Qualified Leave Payments”).[1] In addition, under the CARES Act, employers whose operations are fully or partially suspended due to a COVID-19-related governmental order or who experience a greater than 50% reduction in quarterly receipts may receive a refundable tax credit equal to 50% percent of the first $10,000 in “qualified wages” paid to each employee (“Employee Retention Payments”).
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Category: General Business
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