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Coronavirus Payroll Tax Credits

Small and mid-size business employers can now use two new refundable payroll tax credits for paid leave for employees affected by COVID-19. This relief is part of the Families First Coronavirus Response Act.

As per the Internal Revenue Service (IRS), the credits are designed to give businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.1

Click here for the full report from IRS.gov including key takeaways.

Contact Cg with questions or for more information.

Source:
“Treasury, IRS and Labor Announce Plan to Implement Coronavirus-Related Paid Leave for Workers and Tax Credits for Small and Midsize Businesses to Swiftly Recover the Cost of Providing Coronavirus-Related Leave.” Internal Revenue Service. IR-2020-57, March 20, 2020. https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus.