This year is end in a week. A spike in COVID-29 cases and related restrictions and shutdown, more people have been laid off and millions of people have received jobless help and benefit.
Don’t miss out!!!
Before 2020 is over, we still have time to gain some financial relief to help reduce the effects of the pandemic.
Paid sick leave
Fully refundable tax credits are available, as part of the Families First Coronavirus Response Act.
- Up to $511 per day, or
- $200 per day if caring for a family member or children if school is closed.
Paid family leave
One provision of FFCRA is fully refundable tax credits equal to two-thirds of the employee’s regular pay.
- Up to $200 per day, for an employee to care for a child due to school or place of care closure.
Employee Retention Credit
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides a fully refundable credit that is 50% of qualified wages.
- $10,000, for a maximum credit per employee of $5,000 paid from March 13 – Dec. 31, 2020.
Important notes about COVID-19 tax credits:
- For businesses to receive the credits, wages paid must occur by Dec. 31, 2020 or earlier.
- If a Paycheck Protection Program loan was taken, the employer would not be eligible for the Employee Retention Credit.
- Employers who choose to file one or more Forms 7200 to request an advance payment of the tax credits, the last day to file is either Feb.1, 2021, or the date employer’s Forms 941 are filed for forth quarter 2020, whichever is earlier. Any Forms 7200 received after that date will be rejected by the IRS