Employer Update
How to Apply for Paid Leave Tax Credits
The Families First Coronavirus Response Act (FFCRA) provides businesses with under 500 employees 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 .
EMPLOYERS CAN RECOUP 100% QUALIFIED PAID LEAVE
EXPENSES IT PAYS EMPLOYEES THROUGH IRS TAX CREDITS
The amount of paid leave you pay an employee is determined by the "reason" for leave. Download and review this poster click here for quick access on required pay rates to employees requesting leave.

Eligible Employers will claim the credits on their federal employment tax returns (e.g., Form 941, Employer's Quarterly Federal Tax Return ), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. 

If there are insufficient federal employment taxes to cover the amount of the credits, an Eligible Employer may request an advance payment of the credits from the IRS by submitting a  Form 7200, Advance Payment of Employer Credits Due to COVID-19 .

Eligible Employers claiming the credits must retain records and documentation related to and supporting each employee’s leave to substantiate the claim for the credits, and retain the Forms 941, Employer's Quarterly Federal Tax Return, and 7200, Advance of Employer Credits Due To COVID-19, and any other applicable filings made to the IRS requesting the credit.


Click here for FAQ’s on the tax credits .

Questions? For additional questions on claiming these tax credits, please consult a tax professional .
For more important COVID-19 information from the Texas Propane Gas Association, click here .