Delay of Payment of Employer Payroll Taxes:
Employer share of payroll taxes will be deferred for the period beginning on the date the CARES Act goes into effect until January 1, 2021. This relates to the social security and medicare taxes on employee's payroll.
50% of the deferred payroll tax will be deferred until December 31, 2021 and the remaining balance will be deferred until December 31, 2022.
We highly recommend that you stay current on your payroll tax payments as your cash flow permits.
Net Operating Losses:
Under the CARES Act, Net Operating Losses generated in tax years 2018, 2019 & 2020 will be eligible for carryback to each of the 5 years preceding the taxable year of such loss.
Paid Sick Leave:
Families First Coronavirus Response Act requires eligible employers with less than 500 employees to pay sick employees. Employers will receive a credit on their payroll taxes to offset the compensation they pay for sick time.
***Please note: employers with less than 50 employees are not required to comply with this Act.
1. The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee's pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis.
2. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee's pay.
Employer Reimbursement of Paid Sick Leave
For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days.
Child Care Leave Credit
For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days.
Please feel free to contact us with any questions via email at 561-659-1177. Thank you for your continued support and confidence in our firm.
