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.
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:
- is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
- has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
- is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
- is caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, or has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
- is caring for a child of such employee if the school or place of care of the child has been closed (including the closure of a summer camp, summer enrichment program, or other summer program), or the child care provider of such child is unavailable due to COVID-19 precautions; or
- is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
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!
Additional articles in this series:
- Congress Passes New Stimulus Bill
- Overview of Second Round of PPP Funds
- New Rules Relating to PPP Loan Forgiveness
- Major Changes to Meals Expense Deductions for Tax Years 2021 and 2022
- Employment Credit for Schedule C Businesses
- Change for Residential Rental Property Depreciation
- 2020 Tax Extenders