New Employer Tax Credits

Author: C.A.C Financial Services | | Categories: Credit Restoration Assistance , Identity Protection Assistance , IRS Tax Help , Payroll Services , Personal Budgeting Assistance , Small Business Accounting , Small Business Bookkeeping , Tax Debt Resolution Services

Blog by C.A.C Financial Services

Many businesses that have been severely impacted by coronavirus (COVID-19) will qualify for two new employer tax credits – the Credit for Sick and Family Leave and the Employee Retention Credit.

  • Sick and Family Leave
    • Credit for Sick and Family Leave
    • Caring for someone with Coronavirus
    • Care for children due to daycare or school closure
    • Credit for eligible employers
  • Employee Retention Credit
    • A refundable tax credit equal to 50 percent of up to $10,000 in qualified wages (including health plan expenses), paid after March 12, 2020, and before January 1, 2021.
    • Capped at $5,000 per employee and applies against certain employment taxes on wages paid to all employees.
    • Eligible employers can reduce federal employment tax deposits in anticipation of the credit.
    • Can also request an advance of the employee retention credit for any amounts not covered by the reduction in deposits.
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