Due to this Covid-19 many businesses have been severely impacted. This loss is unimaginable by suspending their regular functions fully or partially and are really facing problems to maintain their employees on companies’ payroll. To encourage both Employers and Employees IRS came up with new Credit regardless of size of organization (includes Tax Exempt Organizations).

New Covid-19 Employer Tax Credit (The Employee Retention Credit)

The Credit for Paid Sick and Family Leave

TThe refundable credit is 50% of up to $10,000 in qualified wages paid to an employee by an eligible employer

The wages paid from Mar 13, 2020 to Dec 31, 2020 are considered for their credit

Tax Exempt Individuals are also eligible

NOTE: Employer cannot use same wages for the Employee Retention Credit and The Credit for Paid Sick and Family Leave