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Tax credits

Employee retention tax credits

The Coronavirus Phase III Response Legislation also creates an employee retention credit for employers subject to closure due to COVID-19. You may be eligible for a refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose (1) operations were fully or partially suspended, due to a COVID-19-related shut-down order, or (2) gross receipts declined by more than 50% when compared to the same quarter in the prior year.

You may also defer payment of employer payroll taxes, which includes the employer share of the Social Security tax you otherwise are responsible for paying to the federal government with respect to your employees. You may also carry net operating losses from 2020 back five years. Please note, as of Dec. 22, 2020 employers who receive Paycheck Protection Program (PPP) loans may still qualify for the employee retention tax credit with respect to wages that are not paid for with forgiven PPP proceeds.

Additionally, CMS is expanding its accelerated and advance payment program for all Medicare physicians; see below.

The Academy recommends you consult your tax advisor or accountant for help in implementing these provisions.

Additional COVID-19 business meeting resources

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