Net operating loss liberalizations: The 2017 Tax Cuts and Jobs Act (the 2017 Tax Law) limited NOLs arising after 2017 to 80% of taxable income and eliminated the ability to carry NOLs back to prior tax years. For NOLs arising in tax years beginning before 2021, the CARES Act allows taxpayers to carryback 100% of…
Delay of payment of employer payroll taxes: Taxpayers (including self-employed) will be able to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Taxes that can be…
The “CARES Act” establishes a tax credit for employers with fewer than 100 employees. The credit is 50% of qualified wages paid to employees, capped at $10,000 in qualified wages ($5,000 maximum credit). Eligible Employers must either have fully or partially suspended their operation during any calendar quarter in 2020 due to orders from an…
Signed into law on March 18, 2020, the Families First Coronavirus Response Act instituted new, mandatory rules for paid sick leave and FMLA directly related to COVID-19. Employers are required to post at their place of employment a new notice related to the law. Further information can be found on the Department of Labor’s website:…
Paycheck Protection Program: The “CARES Act” establishes a new loan under the SBA called the “Paycheck Protection Program (PPP).” The loan amount will be 250% of your business’s average monthly payroll costs over the previous 12 months and can be used for payroll and certain occupancy costs. At the end of the loan’s covered period,…
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