Businesses are reopening only to be concerned about the possibility of being shut down again. With the current state of the economy, it is important to have experts who can guide you through these tumultuous times. Payroll Vault’s experts will keep you informed and help you understand the most recent FFCRA and CARES Act and bring meaning to ways these programs can impact your business. Below are four options to review:
1) Paycheck Protection Program Forgiveness
Accurate informative payroll reports will be key when calculating PPP forgiveness. Our payroll specialists and software providers have the ability and knowledge to prepare the required reports.
2) Employee Retention Credit
Businesses experiencing a 50% decline in gross receipts compared to the same quarter of 2019 or who have been fully or partially shutdown by order, may be eligible to receive a refundable payroll tax credit of 50% of qualified employee wages up to $10,000 per employee.
3) Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act
Paid leave for employees for 10 days to stay home because of COVID issues due to their own medical condition or to care for others.
4) Payroll Tax Deferral
Payroll tax deferral was created to provide cash flow for businesses suffering the effects of the pandemic. Businesses may defer tax deposits in the amount of the employer share of social security taxes for the period beginning March 27, 2020 and ending December 31, 2020. 50% of the deferred tax will be due in 2021 and the remaining amount in 2022.
During these uncertain times it is more important than ever for businesses to analyze their current financial situation to ensure survival. When you run your own business, it is hard to find time to understand all the new government programs that revolve around payroll and what they mean to their business. It is important for business owners to make informed decisions that are based on accurate and timely information. Count on us at Payroll Vault to assist and answer questions.