The recently enacted Families First Act and CARES Act authorize refundable tax credits for employers paying qualified leave wages or qualified retention wages under the Acts. In Notice 2020-22, the Internal Revenue Service has announced that no failure to deposit penalties or will be imposed on amounts of employment taxes that are not deposited to the extent such amounts are equal to or less than the amount of such refundable tax credits. Relief from Penalty for Failure to Deposit Employment Taxes
IRS Publishes FAQ on Employee Retention Credit
The CARES Act provides a refundable employee retention credit against payroll taxes for wages paid by employers that carry on a trade or business in 2020 that either (i) fully or partially suspends operations during any calendar quarter in 2020 due to appropriate governmental action or (ii) experiences a significant decline in gross receipts during the calendar quarter. The IRS has published a FAQ addressing, among other things, eligibility for the credit, how the credit is calculated, limits on the credit and how it relates to the refundable credit for sick or family leave wages allowable under the Families First Coronavirus Relief Act. IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19; FAQs: Employee Retention Credit under the CARES Act
Mississippi Department of Revenue Installs Drop Box
The Mississippi Department Revenue headquarters is closed, but the Department has advised on Twitter that there is a drop box outside the building for any important documents taxpayers may need to submit.
IRS Publishes Extensive FAQ on Refundable Tax Credits for Paid Leave required under the Families First Coronavirus Response Act (FFCRA).
The FFCRA requires employers to pay employees up to 80 hours of additional sick and family leave required under the Act. The IRS has published a lengthy FAQ addressing the issues that may be encountered by affected employers including a full description of the credits and how they are calculated, limits on the credits and how they are calculated. COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs