COVID-19 Employer Playbook

Employer Tax Credit Availability A tax credit against employment taxes is available for certain businesses. Employers are eligible for this credit if the operation of their business is fully or partially suspended during the calendar quarter due to orders of a governmental authority that limited commerce, travel, or group meetings. An employer is also eligible for this credit in the first calendar quarter in which the employer has a reduction of gross receipts of more than 50% in a calendar quarter as compared to the same calendar quarter in the prior year, and eligibility for the credit continues in each calendar quarter as long as the employer has a reduction of gross receipts of more than 50% reduction from the calendar quarter in the prior year. The amount of the tax credit is 50% of the qualifying wages of the employer. In general terms, qualifying wages for each employee are limited to $10,000 for all quarters. Wages paid to certain employees are subject to additional limitations or exclusions. The credit is not available if the employer is a borrower under the small employer loan program (Payroll Protection Program), and the amount of the credit is reduced by any credits allowed under sick leave or family leave credits under the FFCRA. Employee Retention Credit for Employers Closed Due to COVID-19 The CARES Act provides eligible employers with a refundable payroll tax credit equal to 50% of certain “qualified wages” (including certain health plan expenses) paid to its employees in a calendar quarter if either 1. The operation of the business is fully or partially suspended due to a governmental order related to COVID-19 or 2. The gross receipts for the business are less than 50% of gross receipts for the same calendar quarter of the prior year. The employee retention credit is generally available for employers with more than 500 employees. For employers with more than 100 employees, the credit is available only with respect to wages paid to an employee that is not providing services due to the circumstances described above. The credit is capped at $5,000 (50% of $10,000 qualified wages) per employee for all calendar quarters.

General Provisions of the Legislation

Individual Recovery Payments Economic stimulus payments will be made to individuals on the following basis.

Income Threshold

Individuals

Joint Filers

< $75,000 Individual < $150,000 Joint Filers

$1,200 Cash Payment

$2,400 Cash Payment

Plus $500 per child refundable tax credit

$75,000 - $99,000 Individual $150,000 - $198,000 Joint Filers

Cash payments phased out by 5% per $5,000 over the base threshold

> $99,000 Individual > $198,000 Joint Filers

No recovery payments

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