New Employer Tax Credits
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.
- e-Posters: