What loan and grant assistance is available for small businesses?
The Small Business Administration is no longer accepting new applications for COVID-19 relief loans or grants. For more information from the SBA, visit: https://www.sba.gov/funding-programs/loans/covid-19-relief-options
Employee Retention Tax Credit
Congress created an Employee Retention Credit through the CARES Act with the goal of incentivizing employers affected by COVID-19 to keep employees on their payroll. The American Rescue Plan Act extended this credit through December 2021. Businesses that qualify can take the credit for a portion of the wages they pay to some or all their employees, up to $7,000 per employee for each quarter. The maximum credit is $28,000 for an employee for 2021.
Deferment of Employer Payroll Taxes
Under the CARES Act, small businesses may defer paying the employer share of certain payroll taxes, including the Social Security portion of Federal Insurance Contributions Act (FICA) payroll taxes of certain through the end of 2020. All 2020 deferred amounts would be due in two equal installments. One installment would be due at the end of 2021 and the other at the end of 2022. Employers utilizing the Paycheck Protection Program (PPP) may no longer use this deferral once a lender decides to forgive the PPP loan.
The IRS has more information on Deferral of Employer Payroll Taxes HERE.
Paid Leave Credit for Vaccines
The American Rescue Plan Act allows small and midsize employers, and certain governmental employers, to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations. The American Rescue Plan Act tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021. Small businesses can access the most current information for providing paid leave to employees receiving COVID-19 vaccines HERE.
