IRS to Provide Tax Relief to Some Employers in Light of Families First Coronavirus Response Act
Published: March 22, 2020
On March 20, 2020, the Department of Treasury, IRS, and Department of Labor announced plans to provide some relief for small and midsize employers in light of the recently passed Families First Coronavirus Response Act. Specifically, it was announced that employers will have access to refundable payroll tax credits designed to provide reimbursement for the cost of providing COVID-19 related leave to their employees.
Among the refundable tax credits are:
(1) withheld federal income taxes;
(2) the employee share of Social Security and Medicare taxes; and
(3) the employer share of Social Security and Medicare taxes for all employees.
The full announcement can be found here: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus.
We anticipate that more comprehensive guidance will be announced shortly. When it is, we will provide an update. Until that happens, if you have any questions, please do not hesitate to reach out to any of our Labor and Employment attorneys for guidance.
For more Weintraub Tobin COVID-19 resources, visit our update page.