An important employment tax credit provided by the CARES Act is the Employee Retention Credit (ERC). This credit is payroll tax credit equal to 50% of up to $10,000 of qualified wages per employee paid from March 13, 2020 through December 31, 2020.
On June 5th, 2020 the Paycheck Protection Program Flexibility Act of 2020 was signed into law. The Act eases restrictions on how businesses can spend their Paycheck Protection Program (PPP) funds, giving business owners a better chance of qualify for loan forgiveness.
The Small Business Administration (SBA) released the Paycheck Protection Program (PPP) loan forgiveness application along with detailed instructions on May 15, 2020. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans.
The CARES Act provides for the delay of payment of Employer Social Security tax incurred between March 27, 2020 and December 31, 2020. 50% of the deferred tax payments are due on December 31, 2021 and 50% is due on December 31, 2022.
The CARES Act provides payroll tax credit equal to 50% of up to $10,000 of qualified wages per employee paid from March 13, 2020 through December 31, 2020. Employers are eligible for the credit for any quarter in which they have either had to fully or partially suspend operation of business because of governmental orders due to COVID-19.
While many extensions and flexibilities were enacted with recent legislation, one date still remains: the last day a PPP loan application can be approved is June 30, 2020. That means now is the time to apply for a PPP loan before time runs out.