In addition to funding opportunities provided by the SBA, business can also take advantage of the following tax credits aimed at helping businesses through these tough times.
Employee Retention Credit
The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. The credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care. Learn more here.
Families First Coronavirus Response Act
The FFCRA requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.
Covered employers qualify for dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA. Qualifying wages are those paid to an employee who takes leave under the Act for a qualifying reason, up to the appropriate per diem and aggregate payment caps. Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage. Learn more here.