What You Need To Know About COVID-19 Federal Tax Relief

Over the last three months, COVID-19 has grown to affect almost every aspect of daily life. From shelter-in-place mandates to the millions of workers currently out of work, we’ve all felt the impact.

As a small business ourselves, we understand that this is a time of financial crisis for so many similarly-sized businesses across the country. If you are a small business owner looking for answers, please keep an eye on this blog. We will continue to provide you with in-depth analysis of the changing situation and what it means for you and your business.

So far, we’ve provided a look at COVID-19 related state tax relief and what state taxes may look like after the crisis subsides. (Check out our recent blog on some sales tax relief being offered by the state of California.) We’ll now dive into federal tax relief and how you can expect to be impacted.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act

The CARES Act, signed into law by President Trump on March 27, offers $2.1 trillion in aid to individuals and businesses.

As part of the act, employers may claim a 50 percent tax credit on the first $10,000 of qualified wages paid to employees from March 13 to December 31, 2020. Qualified wages include wages of employees who were either furloughed or whose hours have been reduced due to COVID-19.
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