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COVID-19 Payroll Tax Relief for Employers
The Families First Coronavirus Relief Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) make two separate, but related, tax credits available to employers, including tax-exempt organizations, whose business is affected by the COVID-19 crisis.
- The FFCRA provides small and mid-size businesses with fully refundable tax credits to reimburse them for the costs of paid sick and family leave wages to their employees for COVID-19-related leave.
- The CARES Act encourages eligible employers to keep employees on their payroll by providing eligible employers with an employee retention tax credit. The CARES Act also permits employers to defer payment of their remaining 2020 Social Security payroll tax liabilities for up to two years.
The credits can help provide immediate cash flow. Read Yeo & Yeo’s COVID-19 Payroll Tax Relief Business Brief to learn about the provisions of both credits, eligibility, and the three ways to claim the credits.
Learn more about the COVID-19 Payroll Tax Relief Credits
Taking advantage of these credits can be a complex process for many employers, especially since guidance is still pending on specific aspects of the credits. Yeo & Yeo is closely monitoring the guidelines as they become available. Please contact us for assistance.
The information contained in this post may not reflect the most current developments, as the subject matter is extremely fluid and constantly changing. Please continue to monitor Yeo & Yeo’s COVID-19 Resource Center for ongoing developments. Readers are also cautioned against taking any action based on information contained herein without first seeking professional advice.