The Treasury, IRS and Department of Labor issued a joint announcement that small and midsize employers can take advantage of two new refundable payroll tax credits designed to reimburse them for the cost of providing Coronavirus-related leave to their employees. The announcement/plan can be found here.
Many businesses have been concerned that they would not receive any of the reimbursements until 2021, causing an extreme initial hardship. The Government is attempting to address that concern for businesses with less than 50 employees.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form to be released shortly.
For additional resources on COVID-19, please access HSB’s resource page.