You may be entitled to a tax credit if your business became inoperable during the COVID-19 pandemic or sustained damage from a hurricane, wildfire, or other qualified disaster.
Several relief initiatives in response to COVID-19 offer payroll credit options to certain employers.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, employers could be eligible for a retention credit against their portion of the social security tax if they’ve retained and continue to pay wages to employees who are unable to work. This includes excess wages paid to employees paid full-time wages but only working part-time hours.
These employers could also be eligible for immediate refund for any excess credit worth up to $5,000 per eligible employee. Learn more.
Small employers with less than 500 full- and part-time employees could be eligible for a credit against their portion of the social security tax if they’re required to provide mandated paid leave to qualified employees under the Families First Coronavirus Response Act (FFCRA). They could also be eligible for an immediate refund for any excess credit.
The available credit varies depending on the employee’s reason for leave. If an employee themselves is sick or required to self-quarantine as a result of COVID-19, the credit could be worth up to $5,110 over an aggregate 10 days
If the employee needs to care for a sick family member or child due to closed schools, the credit could be worth up to $2,000 over the first 10 days and up to $10,000 for an additional 50 days.
For more information on relief strategies and guidance related to COVID-19, please visit our dedicated web page.
In addition to COVID-19 impact, your business could qualify for a disaster relief tax credit if it meets the following criteria:
As of December 20, 2019, impacts from several qualified disasters in the United States are eligible for the credit. Here are a few qualified disasters for which the credit is available, as well as a comprehensive reference map of all current US regions with designated disaster zones:
To learn if your company qualifies for the credit, please fill in the below form. We’ll respond with a list of disaster credits you’re potentially eligible to receive as well as next steps you can take to claim them.
There are no filing requirements for the credit, but businesses must meet the above criteria and maintain proof that the employees performed substantially all of their duties at the location up to the day the location became inoperable.
If your business is located in a designated disaster zone or rendered inoperable due to COVID-19, we can help you determine your eligibility, claim the credit, and locate other federal and state hiring and wage-based credits.
To start, we’ll work with you to determine if your business qualifies. We’ll then conduct the following activities:
In addition to calculating the disaster credits, MaxCredits has a web-based platform that can determine if your business qualifies for other federal credits, including:
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