Due to the significant impact of Covid-19 on businesses, the government has established several important payroll related relief programs to help all businesses.
The PPP (Paycheck Protection Program) offered forgivable loans to businesses to cover wages and a few other qualified company expenses for about 2 and a half months.
If you did not apply for or receive the PPP loan, the Federal government has made 3 new credits available to all employers.
- Qualified Sick leave credit – Your employees or their qualified family members were infected and are paid qualified sick leave wages.
- Qualified Family leave credit – Employees can’t work because they need to care for children due to school closing or lack of childcare, etc.
- Employee Retention Credit – Your business suffered significant loss of revenue (>50% drop) or is suspended by government order.
Please refer to the IRS publications and FAQs above for more information about the qualifications, maximum credit allowed and record-keeping requirements.
These credits will be claimed on the quarterly form 941, starting from the 2nd quarter to the 4th quarter of 2020. Once you claim these credits, you may want to start to keep detailed records and track qualified wages and related health plan expenses, and more. The IRS, as well as Paycheck Manager, are still working to implement the changes to the new form 941 and e-File.
About PCM
Paycheck Manager is a complete self-service payroll management tool for any business manager who wants to prepare, view, and print paychecks, payment vouchers, and payroll reports. All information is saved in our secure environment for easy payroll management. Try Paycheck Manager payroll software for free for up to three months at www.paycheckmanager.com.
About C&S Technologies
C&S Technologies, Inc. has been providing small businesses throughout the nation Free payroll calculator, IRS authorized payroll eFiles (941, 940, e.g.) and business payroll and tax services since 2000. The Silicon Valley-based company offers six business payroll management solutions that allow business owners and managers to choose which specialty services suit their individual needs, including eSmartPaycheck.com, PaycheckManager.com, SimplePayroll.com, w2manager.com, 1099manager.com, and eSmartPayroll.com.