CARES Act Updates
A new standard report called “CARES Paycheck Protection Program Report” will be added to iSolved on 4-3-20. This report is meant to assist employers in providing their lenders with the applicable payroll information that is needed to apply for the PPP forgivable loan. The report will be an excel format with tabs for summary information, employee detail and earnings summary by month.
CARES Act Upcoming
CARES Act Tax Payment Deferrals
» A new tax status will be added called “COVID Deferred” which will function the same as “Block Tax Filing.” This will allow partners to easily identify those employers utilizing the tax payment deferral allowed in the CARES Act. We will update you when this is available for use.
CARES Act Employee Retention Credit
» This credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
» Employers with 100 employees or fewer: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full-time work, the employer still receives the credit.
» Employers with more than 100 employees: If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.
How is the credit calculated?
» The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer-provided health care.
» Source: https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19
– We are currently evaluating methods to track the wages and employer expenses eligible for the retention credit. We will continue to update you on our progress with this new functionality.