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IRS Provides New Refundable Payroll Tax Credits for Small Employers

The IRS has provided two new refundable payroll tax credits[1] for small and midsize employers, designed to immediately and fully reimburse them, for the cost of providing Coronavirus-related leave to their employees. This relief has been provided under the Families First Coronavirus Response Act (the Act), signed by President Trump on March 18, 2020.

The purpose of the Act is to help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees’ funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.  Eligible employers will be able to claim these credits based on qualifying leave they provide employees between the date the law goes into effect (April 1, 2020) and December 31, 2020.

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[1] IR-2020-57

Posted in: Employment Law, News

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