IRS Offers Coronavirus Tax Credits In Tucson For Small Businesses

Press release from the Pima County Public Library :

May 4, 2020

Eligible employers can claim the employee retention credit, a refundable tax credit equal to 50 percent of up to $10,000 in qualified wages (including health plan expenses), paid after March 12, 2020 and before January 1, 2021.

Eligible employers are those businesses with operations that have been partially or fully suspended due to governmental orders due to COVID-19, or businesses that have a significant decline in gross receipts compared to 2019.

The refundable credit is capped at $5,000 per employee and applies against certain employment taxes on wages paid to all employees. Eligible employers can reduce federal employment tax deposits in anticipation of the credit. They can also request an advance of the employee retention credit for any amounts not covered by the reduction in deposits. The advanced payments will be issued by paper check to employers.

Employers who provide paid family and medical leave to their employees may claim a tax credit recently extended until December 31, 2020.

See more at Employer Credit for Paid Family and Medical Leave FAQs.

This press release was produced by the Pima County Public Library. The views expressed here are the author’s own.