Prompt Assistance for Business Under the Families First Coronavirus Response Act

The IRS has announced that guidance will be released next week providing that eligible employers who pay employees under the new requirements for paid sick time or child care leave under the new Law will be entitled to retain payroll taxes due to the IRS in an amount equal to the amount of the qualifying paid sick time and child care leave that they paid, rather than deposit those amounts with the IRS. See for more information and examples.

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

The IRS further provided that if the amount of payroll taxes due is less than the amounts paid to employees for qualifying sick time and child care leave employers will be able to file a request for an accelerated payment from the IRS, which the IRS intends to process in two weeks or less. The IRS will be announcing the details of this new process.

For more information regarding Families First Coronavirus Response Act, please email tax law attorney Jenifer Schembri at jschembri@blalockwalters.com or labor and employment attorney Anne Chapman at achapman@blalockwalters.com.

Jenifer S. Schembri, Esq., Florida Board Certified in Tax Law

Anne W. Chapman Esq., Labor & Employment Law