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April 02, 2020

IRS Issues Frequently Asked Questions Regarding Credits Related to the Families First Coronavirus Response Act – Very Helpful!

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As tax attorneys and business professionals in Columbus, Ohio, we assist our business owners in many aspects of their business and tax planning, as well as with the impact of legislation on business income and cash flow. The unprecedented COVID-19 pandemic has caused unparalleled interruptions to almost all market sectors. Businesses are now facing significantly reduced income, or even zero income, resulting in lower cash flows for ongoing operations. The COVID-19 related economic effects have prompted lawmakers to respond with economic assistance legislation to aid businesses, especially small to mid-sized businesses, with financial relief. Undoubtedly, with new legislation comes numerous questions to navigate this new territory.

As you recall, the Families First Coronavirus Response Act (FFCRA), signed by President Trump on March 18, 2020, gives businesses with fewer than 500 employees funds to provide employees with paid sick leave and family and medical leave related to COVID-19. Please see our prior article on this here. Eligible employers can receive a credit in the full amount of qualified sick leave and family leave wages paid for between April 1, 2020, and December 31, 2020. Employers can be reimbursed immediately by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, employers may request an accelerated payment from the IRS.

With that said, the IRS has issued a frequently asked questions page for small and mid-sized businesses trying to navigate the paid sick and family leave tax credit during the coronavirus outbreak. We strongly encourage each of you to review this. Please see the link here for the detailed frequently asked questions from the IRS. Again, we strongly encourage you to review these.

If you have questions about the Families First Coronavirus Response Act, beyond what the IRS has provided at the link we shared in this blog, please contact Vince Nardone at vnardone@walterhav.com.

Please view the site disclaimer regarding the advice on this blog.

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April 02, 2020

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