IRS Issues Guidance on Tax Credits for Coronavirus Paid Leave Under the Families First Coronavirus Response Act

tax-money

Small and midsize employers may begin using two new refundable payroll tax credits to obtain reimbursement for the costs of providing coronavirus-related leave to their employees, the U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) announced on March 20, 2020.

This relief is provided under the Families First Coronavirus Response Act (the Act), which was enacted on March 18, 2020. The Act provides funds for employers with fewer than 500 employees to provide paid leave, either for their employees’ own health needs or to care for their family members. The Act aims to help employers keep workers on their payrolls while ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the coronavirus (COVID-19).

Highlights of the Families First Coronavirus Response Act

Paid Leave Requirements

The federal coronavirus relief law requires employers to provide paid sick and family leave for COVID-19-related reasons, including lack of child care.

Employer Tax Credits

Eligible employers may claim two tax credits based on the COVID-19-related paid leave that they provide between April 2 and Dec. 31, 2020.

Read More

brant-watson

M. Brant Watson
Senior Vice President
Heffernan Insurance Brokers
D:  (925) 295-2506
M:  (925) 330-1151
Email brantw@heffins.com

Published by L Watson

Need help finding new customers? Give us a try! We will let others know about your Company and your Service and about you..promote your events with social media on the worldwide net. Business Services

%d bloggers like this: