The Internal Revenue Service is reminding businesses that they can take advantage of three new tax benefits in light of the coronavirus relief.
First, the deadlines to file and pay federal income taxes have been extended to July 15. A FAQ is available here.
Also available is the Employee Retention Credit, a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before Jan. 1, 2021.
Businesses can get immediate access to the credit by reducing the employment tax deposits they are otherwise required to make, the IRS explains. Also, if a business’ employment tax deposits are not sufficient to cover the credit, they may get an advance payment from the IRS.
All employers regardless of size, including tax-exempt organizations, qualify for the credit except state and local governments and their instrumentalities and small businesses who take small-business loans.