COVID-19 Payroll Tax Credit Assistance

Leverage FFCRA and ERC tax credits to maximize cash flow and position your company for the upturn.

From abrupt business closures to the new paid leave requirements, the impact of the Coronavirus pandemic on businesses has been unprecedented. Managing short- and long-term cash flow shortages have posed the most pressing challenges.

Let Aprio’s payroll tax credit experts help you create a plan to leverage the tax credit opportunities created by the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid Relief, and Economic Security (CARES) Act.

Our team will work quickly to create a comprehensive strategy to help your business maximize these credits and claim them on your quarterly return.

Aprio’s payroll tax credit team can help you:

  • Create an overall tax credit strategy to maximize short- and long-term cash flow
  • Understand how to best leverage payroll tax credits with other Federal programs
  • Provide tools and guidance on documenting and tracking qualifying employee wages
  • Accurately calculate the credits
  • Claim and assist in filing applicable credits, excluding Form 941 filing

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COVID-19 payroll tax credits at a glance

FFCRA Paid Sick and
Family Leave Tax Credits

Who’s eligible?

Eligible employers have fewer than 500 employees and are required by the FFCRA to pay qualified sick and family leave wages.

Coverage period

Applies to qualified leave wages taken between April 1, 2020 and Dec. 31, 2020.

Value of the credit

  • Equal to 100% of wages paid out for qualified sick and family leave.
  • Excludes wages paid out by PPP loan or ERC credits.
  • Maximum credits are subject to the paid leave caps defined by the FFCRA:
  • Up to $5,110 for each employee who takes paid sick leave for a COVID-19 diagnosis or mandated quarantine.
  • $2,000 for each employee who takes paid sick leave to care for a family member with COVID-19 or a child whose school has closed.
  • Up to $10,000 per employee for paid family and medical leave for child-care reasons related to COVID-19.
  • Total aggregate of $12,000 if taking both paid sick leave and family leave.

CARES Act
Employee Retention Credit

Who’s eligible?

Businesses that experienced a significant decline in gross receipts or experienced fully or partially suspended operations due to COVID-19 during 2020. You cannot claim the credit if claiming a PPP loan.

Coverage period

Applies to wages paid between March 13, 2020
and Dec. 31, 2020.

Value of the credit

  • For employers with more than 100 employees – equal to 50% of qualified wages for employees unable to work or provide services, including qualified health plan expenses.
  • For employers with less than 100 employees – equal to 50% of qualified wages for all employees whether they were working or not.
  • Excludes wages paid out for sick and family leave under the FFCRA.
  • Maximum credit of $5,000 per employee

 

 

Work with a payroll tax leader

Aprio has more experience than any firm in the country with the payroll withholding aspect of R&D tax credits. This experience and our defined processes enable Aprio to help clients create a holistic strategy to fully leverage tax credits (including payroll tax credits) to navigate the adverse financial impacts of the Coronavirus pandemic.

In challenging times it is often hard to consider what’s next. That is our specialty. If you would like to learn how Aprio can help you leverage tax credits to conserve cash, contact Carli Huband, Partner-in-Charge, Aprio R&D Tax Credit Services.

 

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