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The expanding scope of the Coronavirus has created uncertainty and anxiety on a global scale, encompassing both public health and economic impacts. As business leaders around the world grapple with a wide range of questions, Paul Hastings is here to help.

 

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PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

Mar 23, 2020, 19:38 PM
Publication Type(s):
Client Alerts
Exlcude on home page:
No

 

Click here to read more from our Coronavirus series.

 

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

When Does The New Law Go Into Effect?

The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

Which Employers Are Eligible For The Credit?

Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

How Much Is The Credit Worth?

The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

How Can Employers Claim The Credit?

Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

Click here to read more from our Coronavirus series.

 

IsRss:
  • tax law
  • employment
  • client alerts

Linked PracticeAreas

7 comments

Leave a comment
  1. lospis espo | Jul 08, 2020
  2. rogerlagasca | Jul 06, 2020
    Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
  3. rogerlagasca | Jul 03, 2020
  4. rogerlagasca | Jul 02, 2020
  5. rogerlagasca | Jul 02, 2020
  6. rogerlagasca | Jun 30, 2020
  7. Tyrese Mcfarland | Jun 30, 2020

    Leave a comment

    Client Alert

    PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

    Mar 23, 2020, 19:38 PM
    Publication Type(s):
    Client Alerts
    Exlcude on home page:
    No

     

    Click here to read more from our Coronavirus series.

     

    On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

    While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

    When Does The New Law Go Into Effect?

    The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

    Which Employers Are Eligible For The Credit?

    Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

    The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

    How Much Is The Credit Worth?

    The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

    How Can Employers Claim The Credit?

    Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

    Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

    In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

    What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

    If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

    The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

    Click here to read more from our Coronavirus series.

     

    IsRss:
    • tax law
    • employment
    • client alerts

    Linked PracticeAreas

    7 comments

    Leave a comment
    1. lospis espo | Jul 08, 2020
    2. rogerlagasca | Jul 06, 2020
      Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
    3. rogerlagasca | Jul 03, 2020
    4. rogerlagasca | Jul 02, 2020
    5. rogerlagasca | Jul 02, 2020
    6. rogerlagasca | Jun 30, 2020
    7. Tyrese Mcfarland | Jun 30, 2020

      Leave a comment

      LABOR & EMPLOYMENT

      PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

      Mar 23, 2020, 19:38 PM
      Publication Type(s):
      Client Alerts
      Exlcude on home page:
      No

       

      Click here to read more from our Coronavirus series.

       

      On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

      While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

      When Does The New Law Go Into Effect?

      The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

      Which Employers Are Eligible For The Credit?

      Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

      The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

      How Much Is The Credit Worth?

      The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

      How Can Employers Claim The Credit?

      Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

      Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

      In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

      What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

      If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

      The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

      Click here to read more from our Coronavirus series.

       

      IsRss:
      • tax law
      • employment
      • client alerts

      Linked PracticeAreas

      7 comments

      Leave a comment
      1. lospis espo | Jul 08, 2020
      2. rogerlagasca | Jul 06, 2020
        Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
      3. rogerlagasca | Jul 03, 2020
      4. rogerlagasca | Jul 02, 2020
      5. rogerlagasca | Jul 02, 2020
      6. rogerlagasca | Jun 30, 2020
      7. Tyrese Mcfarland | Jun 30, 2020

        Leave a comment

        FINANCIAL REGULATION & THE CARES ACT

        PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

        Mar 23, 2020, 19:38 PM
        Publication Type(s):
        Client Alerts
        Exlcude on home page:
        No

         

        Click here to read more from our Coronavirus series.

         

        On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

        While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

        When Does The New Law Go Into Effect?

        The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

        Which Employers Are Eligible For The Credit?

        Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

        The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

        How Much Is The Credit Worth?

        The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

        How Can Employers Claim The Credit?

        Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

        Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

        In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

        What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

        If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

        The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

        Click here to read more from our Coronavirus series.

         

        IsRss:
        • tax law
        • employment
        • client alerts

        Linked PracticeAreas

        7 comments

        Leave a comment
        1. lospis espo | Jul 08, 2020
        2. rogerlagasca | Jul 06, 2020
          Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
        3. rogerlagasca | Jul 03, 2020
        4. rogerlagasca | Jul 02, 2020
        5. rogerlagasca | Jul 02, 2020
        6. rogerlagasca | Jun 30, 2020
        7. Tyrese Mcfarland | Jun 30, 2020

          Leave a comment

          ASSET MANAGEMENT

          PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

          Mar 23, 2020, 19:38 PM
          Publication Type(s):
          Client Alerts
          Exlcude on home page:
          No

           

          Click here to read more from our Coronavirus series.

           

          On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

          While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

          When Does The New Law Go Into Effect?

          The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

          Which Employers Are Eligible For The Credit?

          Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

          The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

          How Much Is The Credit Worth?

          The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

          How Can Employers Claim The Credit?

          Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

          Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

          In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

          What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

          If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

          The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

          Click here to read more from our Coronavirus series.

           

          IsRss:
          • tax law
          • employment
          • client alerts

          Linked PracticeAreas

          7 comments

          Leave a comment
          1. lospis espo | Jul 08, 2020
          2. rogerlagasca | Jul 06, 2020
            Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
          3. rogerlagasca | Jul 03, 2020
          4. rogerlagasca | Jul 02, 2020
          5. rogerlagasca | Jul 02, 2020
          6. rogerlagasca | Jun 30, 2020
          7. Tyrese Mcfarland | Jun 30, 2020

            Leave a comment

            TAX LAW

            PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

            Mar 23, 2020, 19:38 PM
            Publication Type(s):
            Client Alerts
            Exlcude on home page:
            No

             

            Click here to read more from our Coronavirus series.

             

            On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

            While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

            When Does The New Law Go Into Effect?

            The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

            Which Employers Are Eligible For The Credit?

            Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

            The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

            How Much Is The Credit Worth?

            The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

            How Can Employers Claim The Credit?

            Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

            Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

            In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

            What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

            If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

            The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

            Click here to read more from our Coronavirus series.

             

            IsRss:
            • tax law
            • employment
            • client alerts

            Linked PracticeAreas

            7 comments

            Leave a comment
            1. lospis espo | Jul 08, 2020
            2. rogerlagasca | Jul 06, 2020
              Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
            3. rogerlagasca | Jul 03, 2020
            4. rogerlagasca | Jul 02, 2020
            5. rogerlagasca | Jul 02, 2020
            6. rogerlagasca | Jun 30, 2020
            7. Tyrese Mcfarland | Jun 30, 2020

              Leave a comment

              REAL ESTATE & HOSPITALITY

              PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

              Mar 23, 2020, 19:38 PM
              Publication Type(s):
              Client Alerts
              Exlcude on home page:
              No

               

              Click here to read more from our Coronavirus series.

               

              On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

              While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

              When Does The New Law Go Into Effect?

              The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

              Which Employers Are Eligible For The Credit?

              Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

              The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

              How Much Is The Credit Worth?

              The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

              How Can Employers Claim The Credit?

              Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

              Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

              In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

              What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

              If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

              The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

              Click here to read more from our Coronavirus series.

               

              IsRss:
              • tax law
              • employment
              • client alerts

              Linked PracticeAreas

              7 comments

              Leave a comment
              1. lospis espo | Jul 08, 2020
              2. rogerlagasca | Jul 06, 2020
                Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
              3. rogerlagasca | Jul 03, 2020
              4. rogerlagasca | Jul 02, 2020
              5. rogerlagasca | Jul 02, 2020
              6. rogerlagasca | Jun 30, 2020
              7. Tyrese Mcfarland | Jun 30, 2020

                Leave a comment

                DISPUTES

                PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                Mar 23, 2020, 19:38 PM
                Publication Type(s):
                Client Alerts
                Exlcude on home page:
                No

                 

                Click here to read more from our Coronavirus series.

                 

                On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                When Does The New Law Go Into Effect?

                The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                Which Employers Are Eligible For The Credit?

                Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                How Much Is The Credit Worth?

                The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                How Can Employers Claim The Credit?

                Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                Click here to read more from our Coronavirus series.

                 

                IsRss:
                • tax law
                • employment
                • client alerts

                Linked PracticeAreas

                7 comments

                Leave a comment
                1. lospis espo | Jul 08, 2020
                2. rogerlagasca | Jul 06, 2020
                  Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
                3. rogerlagasca | Jul 03, 2020
                4. rogerlagasca | Jul 02, 2020
                5. rogerlagasca | Jul 02, 2020
                6. rogerlagasca | Jun 30, 2020
                7. Tyrese Mcfarland | Jun 30, 2020

                  Leave a comment

                  PRIVACY & CYBERSECURITY

                  PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                  Mar 23, 2020, 19:38 PM
                  Publication Type(s):
                  Client Alerts
                  Exlcude on home page:
                  No

                   

                  Click here to read more from our Coronavirus series.

                   

                  On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                  While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                  When Does The New Law Go Into Effect?

                  The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                  Which Employers Are Eligible For The Credit?

                  Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                  The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                  How Much Is The Credit Worth?

                  The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                  How Can Employers Claim The Credit?

                  Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                  Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                  In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                  What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                  If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                  The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                  Click here to read more from our Coronavirus series.

                   

                  IsRss:
                  • tax law
                  • employment
                  • client alerts

                  Linked PracticeAreas

                  7 comments

                  Leave a comment
                  1. lospis espo | Jul 08, 2020
                  2. rogerlagasca | Jul 06, 2020
                    Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
                  3. rogerlagasca | Jul 03, 2020
                  4. rogerlagasca | Jul 02, 2020
                  5. rogerlagasca | Jul 02, 2020
                  6. rogerlagasca | Jun 30, 2020
                  7. Tyrese Mcfarland | Jun 30, 2020

                    Leave a comment

                    SECURITIES & CAPITAL MARKETS

                    PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                    Mar 23, 2020, 19:38 PM
                    Publication Type(s):
                    Client Alerts
                    Exlcude on home page:
                    No

                     

                    Click here to read more from our Coronavirus series.

                     

                    On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                    While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                    When Does The New Law Go Into Effect?

                    The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                    Which Employers Are Eligible For The Credit?

                    Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                    The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                    How Much Is The Credit Worth?

                    The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                    How Can Employers Claim The Credit?

                    Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                    Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                    In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                    What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                    If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                    The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                    Click here to read more from our Coronavirus series.

                     

                    IsRss:
                    • tax law
                    • employment
                    • client alerts

                    Linked PracticeAreas

                    7 comments

                    Leave a comment
                    1. lospis espo | Jul 08, 2020
                    2. rogerlagasca | Jul 06, 2020
                      Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
                    3. rogerlagasca | Jul 03, 2020
                    4. rogerlagasca | Jul 02, 2020
                    5. rogerlagasca | Jul 02, 2020
                    6. rogerlagasca | Jun 30, 2020
                    7. Tyrese Mcfarland | Jun 30, 2020

                      Leave a comment

                      EUROPE

                      PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                      Mar 23, 2020, 19:38 PM
                      Publication Type(s):
                      Client Alerts
                      Exlcude on home page:
                      No

                       

                      Click here to read more from our Coronavirus series.

                       

                      On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                      While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                      When Does The New Law Go Into Effect?

                      The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                      Which Employers Are Eligible For The Credit?

                      Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                      The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                      How Much Is The Credit Worth?

                      The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                      How Can Employers Claim The Credit?

                      Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                      Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                      In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                      What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                      If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                      The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                      Click here to read more from our Coronavirus series.

                       

                      IsRss:
                      • tax law
                      • employment
                      • client alerts

                      Linked PracticeAreas

                      7 comments

                      Leave a comment
                      1. lospis espo | Jul 08, 2020
                      2. rogerlagasca | Jul 06, 2020
                        Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
                      3. rogerlagasca | Jul 03, 2020
                      4. rogerlagasca | Jul 02, 2020
                      5. rogerlagasca | Jul 02, 2020
                      6. rogerlagasca | Jun 30, 2020
                      7. Tyrese Mcfarland | Jun 30, 2020

                        Leave a comment

                        LATIN AMERICA

                        PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                        Mar 23, 2020, 19:38 PM
                        Publication Type(s):
                        Client Alerts
                        Exlcude on home page:
                        No

                         

                        Click here to read more from our Coronavirus series.

                         

                        On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                        While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                        When Does The New Law Go Into Effect?

                        The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                        Which Employers Are Eligible For The Credit?

                        Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                        The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                        How Much Is The Credit Worth?

                        The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                        How Can Employers Claim The Credit?

                        Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                        Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                        In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                        What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                        If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                        The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                        Click here to read more from our Coronavirus series.

                         

                        IsRss:
                        • tax law
                        • employment
                        • client alerts

                        Linked PracticeAreas

                        7 comments

                        Leave a comment
                        1. lospis espo | Jul 08, 2020
                        2. rogerlagasca | Jul 06, 2020
                          Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel smm panel Cool stuff you have got and you keep update all of us.
                        3. rogerlagasca | Jul 03, 2020
                        4. rogerlagasca | Jul 02, 2020
                        5. rogerlagasca | Jul 02, 2020
                        6. rogerlagasca | Jun 30, 2020
                        7. Tyrese Mcfarland | Jun 30, 2020

                          Leave a comment

                           

                          KEY INSIGHTS

                          PH COVID-19 Client Alert Series: Employers May Qualify for Significant Tax Credits and Government Reimbursements to Cover Paid Coronavirus-Related Leave

                          Mar 23, 2020, 19:38 PM
                          Publication Type(s):
                          Client Alerts
                          Exlcude on home page:
                          No

                           

                          Click here to read more from our Coronavirus series.

                           

                          On March 18, 2020, President Trump signed the Families First Coronavirus Response Act. The Act allows employees at companies with fewer than 500 employees to take paid leave for a multitude of reasons related to COVID-19. See PH COVID-19 Client Alert New Legislation on Paid Sick Leave and Employer Tax Credits). One recurrent question posed by employers has been what the mechanisms will be for the payroll tax credits associated with the expanded Family and Medical Leave Act leave described in sections 3101 through 3106 of the Act and the Emergency Sick Pay Act described in sections 5101 through 5111.

                          While the IRS continues to issue guidance, recent IRS statements have begun to better explain how the federal government will reimburse covered employers for the costs associated with the expanded FLMA leaves and emergency sick pay, as well as associated health insurance costs. While additional IRS guidance is expected later this week, currently the IRS indicates that these reimbursements will come in the form of payroll tax credits and accelerated refunds directly from the IRS.

                          When Does The New Law Go Into Effect?

                          The FFA was enacted on March 18 and “shall take effect not later than 15 days after the date of enactment of this Act.” Fifteen days from the date of enactment is April 2, 2020—the latest date by which employers should be prepared to comply with the new law. However, the “not later than” language suggests that the DOL could publish its guidance prior to April 2 and announce that the Act is effective sooner than that date.

                          Which Employers Are Eligible For The Credit?

                          Any employer with fewer than 500 employees that provides leave, as required by the Act, is eligible for the tax credit. The Act does not define who is considered an employee for purposes of the 500-employee threshold.

                          The Secretary of Labor has authority to issue regulations excluding certain health care providers and emergency responders from the definition of eligible employee.

                          How Much Is The Credit Worth?

                          The credit will cover the entire amount that the Act requires eligible employers pay. It also allows employers to claim additional tax credits to cover the cost of maintaining health insurance coverage for the employee during the leave period.

                          How Can Employers Claim The Credit?

                          Employers usually withhold federal income tax, as well as the employee’s share of Social Security and Medicare taxes, from their employee’s paychecks. Employers then deposit that amount, along with their share of Social Security and Medicare, with the IRS.

                          Eligible employers can instead retain whatever amount of payroll tax they need—including their share of Social Security and Medicare—to cover the Sick and Child Care leave paid to employees.

                          In other words, assume an employer must deposit $8,000 in payroll taxes with the IRS. And, due to the Act, that employer has paid $5,000 in sick leave. Under this program, the employer only has to send the remaining $3,000 to the IRS on its next, regular deposit date.

                          What If The Withheld Payroll Taxes Are Not Enough To Cover The Paid Leave?

                          If an employer cannot cover paid leave through withholding payroll taxes, it can file for an accelerated tax credit payment from the IRS. So, if the employer paid $5,000 in sick leave, but was only required to send $3,000 to the IRS in payroll taxes, it can keep the entire $3,000 and apply for a $2,000 accelerated tax credit. The IRS will expedite these requests, and expects to process them within two weeks or less.

                          The IRS has stated that it will release a streamlined claim form for employers to submit reimbursement requests this week.

                          Click here to read more from our Coronavirus series.

                           

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                          6. rogerlagasca | Jun 30, 2020
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