The Journal of Accountancy reports that the Coronavirus Aid, Relief, and Economic Security (CARES) Act, H.R. 748, which was passed unanimously by the Senate last week and signed by President Donald Trump on Friday, March 27th contains a plethora of tax measures as part of a $2 trillion aid package designed to help the economy as it suffers from the effects of the coronavirus pandemic.
A large number of tax provisions are included in the over-600-page bill, including payroll tax credit refunds, and an employee retention credit for employers subject to closure due to Covid-19. Eligible employers are allowed a credit against employment taxes equal to 50% of qualified wages (up to $10,000 in wages) for each employee.
Covid-19 continues to be a developing story in the United States, and we will watch for news of any additional tax credits for employers as the situation unfolds.
Further reading:
CARES Act tax provisions aim to stabilize pandemic-ravaged economy (Read @ Journal of Accountancy)
H.R.748 – CARES Act (Read @ Congress.gov)
Instructions for Form 5884-A (03/2020) Employee Retention Credit (Read @ IRS)
Resources for Businesses and Employers (Read @ CDC)