b'LEGISLATIVEREPORTis forgiven, payment of the employersvarious payroll taxes that the employerThere is also an option of filing IRS share of the payroll tax must resume.must pay.These include federal with- Form 7200 and getting a paper check in Any payroll taxes deferred prior to theholding taxes, the employer share ofadvance for the tax credit.date of the PPP loan forgiveness can beSocial Security and Medicare taxes, andThe Internal Revenue Service has paid back in 2021 and 2022 as discussedthe employee share of Social Securityposted additional guidance on each above. Medicare taxes. Thus, the employeeof these tax options on its web page retention tax credit can be used to(www.irs.gov) under the heading Employee Retention Tax Credit reduce quarterly payments of theseCoronavirus Tax Relief For Businesses A business that has been partiallytaxes to the government. and Tax-Exempt Entities. nor totally suspended by a govern-ment shut-down order may be eligible for a new payroll tax credit of up to $5,000 per employee. Also eligible is a business that can demonstrate a significant decline in gross revenues compared to 2019 (the law defines what constitutes a significant decline. An eligible employer can get immediate access to the credit by reducing em-ployment tax deposits otherwise required to be made.The bad news is that if a business has received a PPP loan, it is not eligible for the employee retention tax credit.The refundable tax credit amounts to half of an employees wages (including health plan expenses) up to $10,000 for the period between March 13 and December 31, 2020. Therefore, the maximum credit per employee is $5,000. There is some difference in computing the employee wages on which the tax credit is based, depending on whether the employer averaged no more than 100 full-time employees in 2019 or averaged aboveattention to detail100 full-time employees that year.The law is more generous for an employer with no more than 100 full-time employees. All of the em-ployees wages qualify for purposes of computing the tax credit, regardless of whether the employee worked or not. For an employer with more than 100 full-time employees, the qualified wages for purposes of computing the tax credit are only those paid to a worker who is not providing services due to covid-19-related circumstances. In other words, if the worker is on the job, the wages paid to him or her dont count for purposes of computing the tax credit. www.beurteaux.comThe credit can be applied against MAY 2020FOGHORN 31'