May 18, 2020
The IRS reminds employers impacted by COVID-19 about 3 important new credits available to them.
Employee Retention Credit:
The employee retention credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
Qualifying employers must fall into one of two categories:
Employers will calculate these measures each calendar quarter.
Paid Sick Leave Credit and Family Leave Credit:
The paid sick leave credit is designed to allow the business to get credit for an employee who is unable to work (including telework) because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis. Those employees are entitled to pay sick leave for up to 10 days (up to 80 hours) at the employee’s regular rate of pay up to $511 per day and $5,110 in total.
How will employers receive the credit?
Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees' wages by the amount of the credit.
If your business has a website, you’ve heard about the importance of content. Lots of content— educational, timely, entertaining and frequently updated information that helps boost your search rankings and engage visitors.
This Thanksgiving, what are you grateful for?
When hiring new employees to your business, you must determine if it is for an independent contractor or a regular employee. This is very important as the choice you make has major tax implications.