The Twelve Days of Taxmas – Employee Retention Credit
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing important tax insights through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the fourth day of Taxmas, my accountant gave to me the Employee Retention Credit (ERC) and the Paid Sick Leave and Family Leave Credit.
The ERC became available when the CARES Act was signed into law. Generally, companies are eligible for this credit if they did not receive Paycheck Protection Program funds, have lost revenue due to the COVID-19 pandemic, and have kept employees on staff for 2020. The paid sick leave and family leave credits became available with the passing of The Families First Coronavirus Response Act (FFCRA). These credits allow a business to take a credit for wages paid to employees out of work due to illness from COVID-19 or taking care of family impacted by COVID-19.
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For additional information on how your business can leverage either the ERC or the Paid Sick Leave and Family Leave Credit, click here to contact us.
©2020 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.