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USA: Coronavirus Aid, Relief, and Economic Security Act (CARES)
What's Available Under CARES?
Employee Retention Credit
The Employee Retention Credit is a refundable tax credit equal to 50% of qualifying wages employers pay to their employees after March 12, 2020 and before January 1, 2021. The maximum credit amount is $5,000 per employee for all calendar quarters. This means the IRS will only take wages up to $10,000 per employee into account.
Who is Eligible?
- Businesses that have shutdown due to Covid-19 or
- have incurred greater than or equal to 30% drop in sales in comparison to the 2019 quarter
Please note: This program is not eligible for employers who are receiving a PPP (Paycheck Protection Plan) Loan, regardless of loan forgiveness.
ER Social Security Tax Deferral
The CARES Act allows all employers to defer payment of employer Social Security taxes that are otherwise owed for wage payments made after March 12, 2020, through the end of the calendar year.The deposit due dates are:
- 50% of the taxes on December 31, 202
- the remaining 50% on December 31, 2022.
Please note: This program is not eligible for employers who have been forgiven for PPP (Paycheck Protection Plan) Loan.
- https://www.dol.gov/agencies/whd/pandemic - US DOL
- https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020 - ER Social Security Tax Deferral
- https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act - Employee Retention Credit FAQ
- https://www.irs.gov/coronavirus - IRS