How to Calculate $5,100 Coronavirus Tax Credit Per Employee Under Emergency Paid Sick Leave Act

Coronavirus Relief Act has 2 provisions under the Emergency Paid Sick Leave Act that leads to either $5,110 or $2,000 tax credit for employers.

www.jjthecpahelp.com/taxcredits

This is a reduction of the employer's payroll tax, so it needs to be known in advance of paying the IRS the payroll tax to experience the relief immediately.

Paid sick time due to quarantine, health care provider advised quarantine and/or employee experiencing symptoms of COVID-19 leads to a credit is up to $511 per day, per employee, maximum 10 days.

OR

Paid time due to employee caring for individual that is quarantined, advised by a health care provider to quarantine or is experiencing symptoms of COVID-19 leads to a credit is up to $200 per day, per employee, maximum 10 days.

The tax credit cannot exceed the employer’s portion of social security & Medicare taxes paid in addition to wages. That total tax is 7.65% of wages* for all employees paid (all employees).

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I am a practicing CPA with 27 years of experience, having my own CPA practice for going on 23 years. I work with small businesses and the owners. These circumstances will have and has had an immediate effect on every single one of my clients, and I want to help every single one of them, immediately. I put this video together for clients to help with that, as well as a few others. I love to present tax seminars, which I do around the U.S., so I put that hat on as well to share what I learned or come up with or shared with my clients to help other small businesses, individuals, CPAs, EAs and tax professionals. I hope it helps!

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