The Consolidated Appropriations Act included several new relief packages for individuals and businesses. As we dissect the current bill, YHB is producing a series of in-depth analysis on the bill to help you take advantage of the bill. In this article, we will explore two additional payroll benefits included in this bill.
FFCRA Credits:
The new bill extends the time to take the FFCRA credit from 12/31/2020 to March 31, 2021. This credit relates to pay for employees who are on required sick leave. This is sick leave includes:
For more information on this credit, see our blog post: Employment Credit for Schedule C Businesses.
Employment Tax Deferrals
During the end of 2020, President Trump signed an Executive Order that suspended payroll taxes for anyone whose bi-weekly pay was less than $4,000 for paychecks issued between September 1, 2020 and December 31, 2020. Employees were required to repay these amounts starting January 1, 2021 through April 30, 2021.
The new bill extends the payment period through December 31, 2021.
Should you have any questions, contact a YHB advisor today!