Department of the Treasury and the Internal Revenue Service (IRS) Release FAQs to Help Navigate Paid Sick and Family Leave Tax Credits
Earlier today, the US Department of the Treasury and the IRS released guidance for small and mid-size employers regarding refundable tax credits that reimburse them for the cost of providing their employees paid sick and family leave wages related to COVID-19. The Families First Coronavirus Response Act (FFCRA) gives businesses with fewer than 500 employees funds to provide employees with paid sick leave and family and medical leave related to the pandemic.
- Eligible employers can receive a credit in the full amount of the qualified sick leave and family leave wages paid for between April 1, 2020 and December 31, 2020.
- Employers can be reimbursed immediately by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, employers may request an accelerated payment from the IRS
Read more information on small and mid-size business tax credits for paid sick and family leave.
Department of the Treasury Releases Guidance Regarding the Paycheck Protection Program (PPP)
Yesterday, the Department of Treasury released an information fact sheet on the PPP, which authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the pandemic.
CMS Clarification on Advance Payment Interest
During a meeting with the AMA yesterday, CMS confirmed there’s no fee or interest for the advance payment during the 210 days after the advance, including the 120 days before recoupment begins and during the 90-day recoupment. Interest does start if there’s still debt after that timeline and the physician enters into an extended repayment process. The interest is set at a statutory rate, which is 10.25% right now. CMS is talking to its counsel about any flexibility they have, but the medical community may have to go to Congress.
We expect the AMA to release further guidance on this issue – as well as others that were raised in their meeting, and we will provide the information to you when available.