Here is a quick summary of the tax incentives for paid sick and Child Care leave for employees.Who will be covered under this act?

  • Business owner with up to 500 employees.

  • Self-employed Individuals

What will be covered?

  • Paid sick leave for employees (those who are sick or caring for a sick family members) - up to $511 per day.

  • Paid leave for child care (employees not able to work due to closure of child care facilities) - up tp $200 per day.

Do I really have the cash to pay for this?

  • The IRS is proposing for employers to not make payroll tax payments for that period of time. Employers should use this money to pay employees who are covered under this act.

  • If you don’t have the money, then employers request an accelerated payment from the IRS. This form should be available at some point next week.

  • Self- employed individuals, the proposal is for you to receive this credit on your tax return or get a reduction in your estimate tax payments.

There is a much larger bill in congress that will also give more details on tax and cash flow incentives for individuals and businesses. In the meantime, stay healthy and practices CDC guidance for Workplaces safety during the COVID-19 outbreak