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The CARES Act for Businesses

In this video Mark discusses Employee Retention Credit and Payroll Tax Deferral.



Refundable Payroll Tax Credit for 50% of Wages:  A payroll tax credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel, or group meetings. The credit is also provided to employers who have experienced a greater than 50% reduction in quarterly receipts, measured on a year-over-year basis

Small Business Provision:  For employers who had an average number of full-time employees in 2019 of 100 or fewer, all employee wages are eligible, regardless of whether the employee is furloughed.

What is considered wages?  How much?  The term "wages" includes health benefits and is capped at the first $10,000 in wages paid by the employer to an eligible employee.  Wages do not include amounts taken into account for purposes of the payroll credits, for required paid sick leave or required paid family leave in the Families First Coronavirus Act.


Deferral of Social Security Tax Payments:  Employers are allowed to defer paying the employer portion of certain payroll taxes through the end of 2020.

What if I am Self-Employed and Pay Self-Employment Taxes: You are allowed to defer the payment of 50% of the social security portion of the tax.

Will I have to Pay These Taxes at Some Point?  YES – this is only a deferral.  You must pay these taxes according to this schedule:

            50% of the taxes are to be paid by December 31, 2021

            50% of the taxes are to be paid by December 31, 2022