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Get Schooled on Tax Credits and Cash Flow

Maggie Borden

April 20, 2020

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ICYMI, this spring we're hosting daily webinars as part of our Industry Support learning series. Over the past three weeks we've touched on insurance plans in the time of a pandemic, the state of the seafood industry, navigating the Paycheck Protection Program, and more. Read on for insights and opportunities from CPAs Jessica Hussain, Meredith Kowal, and Tommy Lee of the firm Aprio on how to best manage your cash flow and get the most out of loans and tax credits in these stressful times.

1. Paid sick leave and paid family leave:

  • These leaves are required by the government for businesses with more than 50 employees.
  • Offering paid sick leave or family leave makes you eligible for a payroll tax credit.
  • Starting April 1, businesses can claim up to $12,000 per employee taking leave. However, it only applies to active employees, not those who have been furloughed.
  • If you're self-employed, you can claim sick leave for yourself.
  • You cannot claim both credits at the same time, but can apply for them one after the other.

2. Employee Retention Credit (ERC):

  • This refundable tax credit, filed quarterly, offers up to 50% of qualified wages of employees retained during the COVID-19 pandemic, capped at $10,000 per employee.
  • To qualify, business operations have to be partially or fully suspended, or you must show a 50 percent reduction in gross receipts.
  • If your business has fewer than 100 employees, the credit is based on wages paid to all employees, regardless of whether or not they worked.
  • If your business has more than 100 employees, then the credit is only allowed for wages of employees who didn't work during the calendar quarter.
  • However, if you use the Paycheck Protection Program to pay your employees, you are not eligible for the ERC.

Watch the full webinar for information on SBA loans, EIDL, and more.

Check out what's on-deck for our webinar series.

Our team would like to know what topics you would like us to cover. Please email us at impact@jamesbeard.org with your suggestions on speakers, resources and issues you would like us to host.

Photo: amstockphoto/iStock / Getty Images Plus/Getty Images

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