COVID-19: Business Tax Relief Tool

October 23, 2020

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The Taxpayer Advocate Service (TAS) has launched an online tool that employers can use to determine if they are eligible to receive either the employee retention credit or the paid sick or family leave credits.

 

Background. The Coronavirus Aid, Relief, and Economic Security Act (PL 116-136; CARES Act) provides a refundable payroll tax credit for 50% of wages paid by Eligible Employers to certain employees during the COVID-19 crisis (the "employee retention credit"). See IRS issues FAQs on CARES Act employee retention credit (04/02/2020).

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Under the Families First Coronavirus Response Act (PL 116-127, 3/18/2020, FFCRA), small employers (500 or fewer employees) whose employees receive paid sick or family leave required by the FFRCA are entitled to credits ("paid sick or family leave credits"). See IRS sets out rules for W-2 reporting of COVID-19 sick leave and family leave wages (07/10/2020).

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Online tool. The TAS has launched an online tool that employers can use to determine if they are eligible to receive either the employee retention credit or the paid sick or family leave credits. The tool can be found at COVID-19 Business Tax Relief Tool.

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The TAS says it should take less than five minutes to answer the tool's questions.

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References: For the employee retention credit, see FTC 2d/FIN B6H-4687.5. For the credit for qualified sick leave wages paid during the COVID-19 pandemic, see FTC 2d/FIN B6H-4687.3. For the credit for qualified family leave wages paid during the COVID-19 pandemic, see FTC 2d/FIN B6H-4687.4.