FFCRA Credit
Paycheck Protection Program (PPP) Loan
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Employee Retention Credit
Payroll Tax Deferral
Criteria/ Eligibility
ERs with less than 500 EEs
- Business with not more than 500 EEs.
- Sole proprietors.
- Independent contractors.
- Other self-employed.
- Non-profits [501(c)(3) and 501(c)(19)]
- Business with not more than 500 EEs.
- Sole proprietor (with or w/o EEs).
- Independent contractors.
- Private non-profits.
- Must meet disaster criteria.
Government-ordered shutdown or a significant reduction in gross receipts; does not take advantage of PPP loan.
Any employer.
Requirements
Track and report COVID-19-eligible sick time and family leave wages paid.
- Must provide good faith certification.
- Document covered expenses/EEs.
- Apply for loan forgiveness.
TBA
- Impacted by forced closures or quarantines.
- Seen 50% drop or more in revenues in the quarter Effective until it gross receipts greater than 80% of gross receipts compared to the same quarter of the previous year.
- Can’t take credit and apply for a PPP loan.
ERs not eligible if they plan to see forgiveness
of a PPP loan.
Maximum Amount
80 hours/EE for sick leave; up to $10k/EE for family leave
250% of average monthly defined payroll costs, not to exceed $10M
Up to $2M
Up to $10K/EE, not to exceed the ER tax
Only applied to Employer Social Security
Speed to Get Money
ERs can apply the credit to payroll liability, seek immediate refund for excess or request a refund on their quarterly employment tax returnProgram begins April 3Advanced funds, up to $10,000, will be
received within three days of SBA receiving application.Immediate, of electedImmediate, if elected
Repayment
N/A
Loan forgiveness available for up to 8 weeks of payroll and operating costs. Rules applyNot required of advanced funds
N/ARepaid in 2021 and 2022
Covered Period
April 1, 2020 to Dec. 31, 2020Feb. 15, 2020 to June 30, 2020Jan. 31, 2020 to Dec. 31, 2020Wages paid after March 12, 2020 and before Jan. 1, 2021Deposits due for the period beginning March 27, 2020 to Dec. 31, 2020.
Big Benefit
COVID-19-related sick pay and family leave reimbursable
- Loan 100% government guaranteed.
- Forgives up to 8 weeks of covered expenses++.
- Remainder becomes loan (w/ low interest rates capped at 0.5%).
- Up to $10K.
- Advance money does require repayment
Significant or complete reduction of payroll tax for period
Manage cash flow by postponing employer payroll tax.
Combine with Others
N/A, except PPP loan proceeds cannot be used/forgiven for FF wages covered by credit
- Tax deferrals and loans cannot be combined in most circumstances,
- EE retention credits and loans cannot be combined
Business can apply for and receive a PPP and an EIDL,
they cannot be used for same purposeEmployee retention credits and loans made under
PPP cannot be combinedTax deferrals and loans made under PPP cannot be combined in most circumstances
What Can It Be Used For
To pay COVID-19related sick and family leave pay
- Payroll
- Benefits
- Mortgage interest
- Rent
- Utilities
- Interest on other debt obligations
- Paid sick leave
- Payroll
- Materials
- Rent/mortgage
- Repay obligations that cannot be met due to revenue losses
Offset payroll taxesDefer tax payments
Criteria/ Eligibility
FFCRA Credit
ERs with less than 500 EEs
Paycheck Protection Program (PPP) Loan
- Business with not more than 500 EEs.
- Sole proprietors.
- Independent contractors.
- Other self-employed.
- Non-profits [501(c)(3) and 501(c)(19)].
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
- Business with not more than 500 EEs.
- Sole proprietor (with or w/o EEs).
- Independent contractors.
- Private non-profits.
- Must meet disaster criteria.
Employee Retention Credit
Government-ordered shutdown or a significant reduction
in gross receipts; does not take advantage of PPP loan.
Payroll Tax Deferral
Any employer.
Requirements
FFCRA Credit
Track and report COVID-19-eligible sick time
and family leave wages paid.
Paycheck Protection Program (PPP) Loan
- Must provide good faith certification.
- Document covered expenses/EEs.
- Apply for loan forgiveness.
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
TBA
Employee Retention Credit
- Impacted by forced closures or quarantines.
- Seen 50% drop or more in revenues in the quarter Effective until it gross receipts greater than 80% of gross receipts compared to the same quarter of the previous year.
- Can’t take credit and apply for a PPP loan.
Payroll Tax Deferral
ERs not eligible if they plan to see forgiveness
of a PPP loan.
Maximum Amount
FFCRA Credit
80 hours/EE for sick leave; up to $10k/EE for family leave
Paycheck Protection Program (PPP) Loan
250% of average monthly defined payroll costs, not to exceed $10M
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Up to $2M
Employee Retention Credit
Up to $10K/EE, not to exceed the ER tax
Payroll Tax Deferral
Only applied to Employer Social Security
Speed to Get Money
FFCRA Credit
ERs can apply the credit to payroll liability, seek immediate refund for excess or request a refund on their quarterly employment tax return
Paycheck Protection Program (PPP) Loan
Program begins April 3
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Program begins AprAdvanced funds, up to $10,000, will be received within three days of SBA receiving application.
Employee Retention Credit
Immediate, of elected
Payroll Tax Deferral
Immediate, if elected
Repayment
FFCRA Credit
N/A
Paycheck Protection Program (PPP) Loan
Loan forgiveness available for up to 8 weeks of payroll and operating costs. Rules apply
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Not required of advanced funds
Employee Retention Credit
N/A
Payroll Tax Deferral
Repaid in 2021 and 2022
Covered Period
FFCRA Credit
April 1, 2020 to Dec. 31, 2020
Paycheck Protection Program (PPP) Loan
Feb. 15, 2020 to June 30, 2020
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Jan. 31, 2020 to Dec. 31, 2020
Employee Retention Credit
Wages paid after March 12, 2020 and before Jan. 1, 2021
Payroll Tax Deferral
Deposits due for the period beginning March 27, 2020 to Dec. 31, 2020.
Big Benefit
FFCRA Credit
COVID-19-related sick pay and family leave reimbursable
Paycheck Protection Program (PPP) Loan
- Loan 100% government guaranteed.
- Forgives up to 8 weeks of covered expenses++.
- Remainder becomes loan (w/ low interest rates capped at 0.5%).
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
- Up to $10K.
- Advance money does require repayment
Employee Retention Credit
Significant or complete reduction of payroll tax for period
Payroll Tax Deferral
Manage cash flow by postponing employer payroll tax.
Combine with Others
FFCRA Credit
N/A, except PPP loan proceeds cannot be used/forgiven for FF wages covered by credit
Paycheck Protection Program (PPP) Loan
- Tax deferrals and loans cannot be combined in most circumstances,
- EE retention credits and loans cannot be combined
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
Business can apply for and receive a PPP and an EIDL, they cannot be used for same purpose
Employee Retention Credit
Employee retention credits and loans made under PPP cannot be combined
Payroll Tax Deferral
Tax deferrals and loans made under PPP cannot be combined in most circumstances
What Can It Be Used For
FFCRA Credit
To pay COVID-19related sick and family leave pay
Paycheck Protection Program (PPP) Loan
- Payroll
- Benefits
- Mortgage interest
- Rent
- Utilities
- Interest on other debt obligations
Expansion of the SBA’s Economic Injury Disaster Loan (EIDL)
- Paid sick leave
- Payroll
- Materials
- Rent/mortgage
- Repay obligations that cannot be met due to revenue losses
Employee Retention Credit
Offset payroll taxes
Payroll Tax Deferral
Defer tax payments
We at Prudent Accountants can assist you with the process at reasonable costs. Please feel free to reach out to us.
