Member Bruce Kuczenski of Heartland Payroll Solutions shared this information: The Consolidated Appropriations Act signed on December 27, 2020, updated several of the programs added in 2020 to provide relief for businesses and families during the COVID-19 pandemic. As a result, new information and regulations are available for each of these programs: the Families First Coronavirus Response Act (FFCRA), the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the President’s Executive Order on deferring employee Social Security taxes.
To help you navigate the impact of this new legislation, the information below provides an overview of several of the changes that may be relevant to you.
- FFCRA Emergency Paid Sick and Family Leave
- This program was extended through March 31, 2021. With the new legislation, employers may continue to offer paid sick and family leave and receive a tax credit.
- Please note: Employers are no longer required to offer this option.
- Employee Retention Credit
- This program has been expanded and extended through June 30, 2021. Eligible employers utilizing this option will now be able to claim a tax credit on 70% of up to $10,000 of qualifying wages for each employee with a maximum credit of $7,000 per quarter.
- Paycheck Protection Program
- This program has been reopened through March 31, 2021, with new eligibility requirements, which may allow previously ineligible businesses the opportunity to apply for a forgivable loan. With the new legislation, businesses may also be able to apply for a loan increase on the original funds received or apply for a second forgivable loan.
- Employer Social Security Deferral
- This program was not extended with the new legislation and expired on December 31, 2020.
- Participating employers will be responsible for paying back 50% of the outstanding tax liabilities by December 31, 2021, and the remaining amount by December 31, 2022. Additional details into the collection of these funds will be communicated to participating clients later this year.
- Employee Social Security Deferral
- This program was not extended with the new legislation and expired on December 31, 2020.
- Participating employers/employees will need to repay these outstanding tax liabilities by the end of 2021, and employers will be responsible for any outstanding amounts owed. We will be providing an update to participating clients as to how we will collect the funds in the near future.
Find out more about Heartland Payroll Solutions at their member page https://www.newbritainnetworkgroup.com/business/heartland-payroll-solutions/