To help trades and businesses retain employees and keep them employed during the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Employee Retention Credit for 2020. As part of the Consolidated Appropriations Act, 2021 (CCA), the credit has been extended through December 2021.
The credit is actually a government-sponsored program to keep workers employed and is funded by providing qualifying employers with a refundable credit against certain employment taxes equal to 70% (up from 50% prior to 2021) of the qualified wages that an eligible employer pays to employees after March 12, 2020, and before January 1, 2022. (Before the extension, the credit ended on December 31, 2020.)
BHT&D Certified Public Accountants Blog
Employee Retention Credit Extended Through December 2021
New IRS Form 941: Employment Tax Credits And Other Tax Relief
On June 19th, 2020 the IRS published the final revised Form 941 that will be used for the remainder of 2020. The purpose of filing this quarterly form is to report to the IRS the wages subject to social security, Medicare and federal income tax withholding. This new revised form takes into account changes made by the Families First Act and the CARES Act that provided various types of payroll tax relief for employers.
Tags: Small Business, Employment Tax, Family First Legislation, CARES ACT
CARES Act Employee Retention Credit: An Alternative For Employers To The Paycheck Protection Program
The CARES ACT provides employers an alternative to the Paycheck Protection Program under the Employee Retention Credit. You can only take advantage of one or the other, but not both.
The goal of the Employee Retention Credit is to encourage employers to keep employees on payroll by offering a credit up to $5,000 per employee.
Tags: Small Business, CARES ACT, Employee Retention Credit, Taxes
Unemployment Benefits for Self-Employed Workers And Individuals With Limited Work History
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on Friday, March 27th, 2020 and went into effect on April 1st, 2020. This blog post focuses in on the expansion of unemployment benefits for individuals including the self-employed and individuals with limited work history.
Tags: COVID-19, Michigan Unemployment, CARES ACT, Federal Unemployment, Self Employed
2020 CARES Act Small Business And Self Employed Provisions
A summary of major provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act affecting small businesses and self-employed taxpayers:
Tags: Small Business, CARES ACT, Pay Check Protection, Self Employed
A summary of major provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act affecting individual taxpayers:
Tags: COVID-19, CARES ACT, Federal Unemployment