2020 Coronavirus (COVID-19) Economic Relief Legislation
Has your business been impacted by COVID but still supporting your employees? You could be eligible for a refundable retention credit of up to $33,000 per employee. The credit can offset all federal tax deposits which can be 25%-30% of payroll costs. Anything above that amount is refundable by filing the proper forms.
Any employer, regardless of size, is eligible for the credit during calendar year 2020 if the business: (1) is fully or partially suspended due to a governmental order related to COVID-19, or (2) experiences a significant decline in gross receipts (i.e., a reduction of 50 percent of gross receipts from the same quarter in 2019). The credit also applies to tax-exempt organizations if the operation of the organization is fully or partially suspended due to the circumstances described in (1) above. The credit generally does not apply to governmental employers, including the U.S. Government, state and local governments, or any agency of the foregoing.