“Until the rain starts coming down, pouring. Chill, I got my umbrella.” -Missy Elliott
When it all starts coming down…you’ll want your umbrella! Act Sec. 7001-7005…have you heard of them? It’s part of the FFCRA Refundable Credits and Related Tax Rules and provides payroll credits for required paid sick leave.
Act Sec. 7001 gives 100% credit allowed by employer against payroll taxes. Generally, limited to $200 per employee for 10 days.
Act. Sec 7002 gives sick leave for SE employed individuals and is a refundable credit against SE tax. Individuals receiving paid sick leave as an employee (for other work) have to make an adjustment to avoid receiving a double benefit. They can not claim until a 2020 income tax return is filed but they can reduce estimated taxes for the anticipated credit.
This is effective starting 4/1/20 through 12/31/20. I am not about to put the calculations in this post! But here is a link for more information: https://www.irs.gov/…/covid-19-related-tax-credits-special-…
The FFCRA is to help employees get paid sick leave or expanded family/medical leave for COVID-19 related reasons. The recent additions help employers qualify for tax credits related to the increase in paid time off.
Photo cred to my Seester S. Farr!