- February 15, 2021
- Posted by: admin
- Category: Blog, News, Uncategorized
Its TAX TIME.
Yea, I know! Who cares?
But really, there are 3 new tax credits that YOU, as a business owner MUST know about! All 3 are Covid-19 related, so if you or any of your employees have been effected by the current pandemic, your businesses has less than 500 employees, and you paid wages, more than likely you qualify!
These are refundable tax credits, which means not only can your tax liability be reduced below zero, but any excess is refunded to you. Yep, refunded to the taxpayer. Without boring the heck outta you, I’ve briefly listed all three below. No need to become an expert, but PLEASE PLEASE PLEASE mention this to your CPA or feel free to schedule a time to chat with yours truly, RDJ CPA. These are SUBSTANTIAL tax savings and they are here to help small business owners during these challenging times!
Qualified Sick Leave Credit
Eligible if your business provided employees with paid sick leave for Covid related reasons from April 1, 2020 through March 31, 2021.
$511/day per employee; up to 10 days.
So, potential credit of up to $5,110/employee.
Avaliable to self-employed individuals, but lesser of $510/day or 100% of average daily self employment income
Qualified Family Leave Credit
Eligible if your business provided employees with family and medical leave for Covid related reasons from April 1, 2020 through March 31, 2021
$200/day per employee; up to 10 days
So potential credit of up to $2,000/employee
Available to self-employed individuals also, but lesser of $200/day or 67% of average daily self employment income
Employee Retention Credit
Eligible if business paid qualified wages from March 12, 2020 through July 1, 2021 (first 2 qtrs. of 2021) for 2020
50% of qualified wages up to $10,000
So potential credit of up to $5,000/employee; For 2021 tax year (so next year): 70% of qualified wages up to $10,000 for each calendar quarter
So potential credit of up to $14,000/employee for 1st 2 qtrs. of 2021
That’s all for now….