If you were ineligible, this provision grants you a credit of up to $5,000 per employee during 2020. The credit is applied first to your share of the Social Security tax, then to other payroll taxes. The balance is refunded.
There are additional requirements related to a decline in your gross receipts and generally the credit will only apply to idle workers that you are generously continuing to pay. The idle requirement does not apply if you have 100 or fewer employees.
Here is a link to the IRS’s FAQ:
For more information on how to qualify for and claim this credit, please call or email your partner or manager. We are more than happy to assist you.
Dave focuses on tax compliance and planning in the areas of income and estate tax. He is the tax partner for our automotive group but he’s also tapped for his expertise in real estate, manufacturing and professional services. He’s a whiz at estate and gift taxation and can create a customized approach to designing and implementing a successful exit plan for business owners.
You can reach Dave at 714-672-0022.
Read Dave’s full bio.