COVID-19 continues to have an impact on businesses, employment and the economy. House and Senate Legislators are eager to address these impacts by expanding economic relief through the next round of stimulus. There will be more relief options for businesses including refundable credits for retaining employees via expansion of the CARES Act and refundable credits for employee protection expenses. These credits will work like cash by allowing you to claim almost immediately through not paying a portion of federal payroll taxes or filing a 7200 and receiving a check from the IRS.
We continue to work with our partners in D.C. and monitor negotiations so that we are ready to support you once the next package is signed by the President. We have highlighted some anticipated updates below:
- Took advantage of the PPP already? You could be eligible to receive up to $19,500 per employee through proposed legislation. Updates may include:
- A change in regulations allowing employers who have taken PPP to also utilize the Employee Retention Credit (ERC)
- Increase percentage of credit to 65% of qualifying wages (the CARES Act has it currently set at 50%)
- Increase maximum qualifying wages to $30,000 (the CARES Act has it currently set at $10,000)
- Updated ERC could potentially be allowed for wages as early as March 12 but will more likely apply to wages starting July 1
- The CARES Act counted all wages for employers with under 100 employees and now that would be raised to all wages for employers with under 500 full-time benefits eligible employees
- Safe and Healthy Workplace Tax Credit
- This program enhancement puts into place a refundable payroll tax credit equal to 50% of the qualified employee protection expenses. This covers any COVID-19 preventative expenses for employees such as Employee Protection Equipment, Qualified Workplace Reconfiguration Expenses and Qualified Workplace Technology Expenses. In each calendar quarter, qualified expenses cannot exceed a cap based on the average number of employees. The cap is equal to $1,000 for each of the first 500 employees, plus $750 for each employee between 500 and 1000, plus $500 for each employee that exceeds 1,000.
Synergi Partners is monitoring legislation closely and we are prepared to assist you in claiming these much needed and valuable credits. In the meantime, if you have any questions, please don’t hesitate to reach out us at 843-519-0808.