To help curb layoffs during the Coronavirus pandemic, Congress has created a new federal income tax credit for employers that keep workers on their payrolls.
You can’t use both the credit a Paycheck Protection Program loan, but if you missed out on a loan and are working to maintain your staffing levels, the new Employee Retention Tax Credit may be a good option for your company.
The credit amount equals 50% of eligible employee wages paid by an eligible employer in a 2020 calendar quarter. It’s subject to an overall wage cap of $10,000 per eligible employee. Here are the details.