This year has presented challenges for many businesses. The IRS has added new tax credits available to business owners. As we zero in on the second half of 2020, keep these new tax credits on your radar.
The new Employee Retention Credit that passed due to COVID19 offers 50% tax credit on qualified wages if:
– your business was shut down during the quarantine;
– you experienced a 50% decline in revenues from a comparable quarter in 2019
The new Paid & Sick Leave Credit provides credit to employers who paid employees time off if the employee was unable to work due to:
– A quarantine order
– Being advised from a health care provider to self-quarantine
– Experiencing COVID-19 symptoms and seeking a medical diagnosis
– Experiencing COVID-19 symptoms and seeking a medical diagnosis
The Family Leave Credit provides credit to employers paid for an employee who did not work during a time where their family, such as their child, was unable to attend school or their child care provider was unable to work.
The Family Leave Credit may also apply if the employee’s family member was medically ordered to quarantine, and again if the employee had to miss work but the employer kept them on payroll during the time they were out of work.
You cannot claim these credits if you’ve already received the PPP loan for a business. If you have questions as to whether you may qualify, contact us and we will help you determine.
Matt Ward, CRPC
817-238-6300
Matt.Ward@newcenturyinvestments.com
