4 IRS Emergency Funds for Your Payroll

The payroll tax provisions in each piece of legislation include:

1. Employee retention credit: The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.


2. Payroll tax deferrals: Section 2302 of the CARES Act provides that employers may defer the deposit and payment of the employer's portion of Social Security taxes and certain railroad retirement taxes.


3. Payroll credit for sick leave: Two weeks (up to 80 hours) of paid sick leave at the employee's regular rate of pay where the employee is unable to work because the employee is quarantined.

4. Payroll credit for family leave: The FFCRA provides businesses with tax credits to cover certain costs of providing employees with required paid sick leave and expanded family and medical leave for reasons related to COVID-19, from April 1, 2020, through December 31, 2020.


Resource: https://www.irs.gov/

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Disclaimer: This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal and accounting advice. WYCOTAX, LLC is an outsoure tax, payroll and bookkeeping company and not associated with any aforementioned institution.