Please work with you CPA, Attorney or other tax experts for these items that may be available to you. This is a summary and you need expert advice on your tax decisions, especially during this quickly evolving set of options.
One is the employee retention credit, which is available only if you don't receive a loan from the SBA's Paycheck Protection Program (PPP). It is designed for employers who are retaining and paying employees, even though they're no longer providing services. Businesses get a 50% tax credit if they have more than 100 employees and 100% if they have less than 100. This does include payments for health benefits.
If you take the employee retention credit and then later decide you want a PPP loan, should more PPP appropriation money become available, you'll have to pay the tax credit back.
Employers also are allowed to postpone payment of employer payroll taxes they owe for 2020, repaying 50% in 2021 and 50% in 2022. Again, this is not available for businesses that receive a PPP loan.
Tax credits are also available that cover 100% of sick leave wages for employees who are quarantined because of COVID-19 or are seeking a diagnosis for COVID-19.
The federal government removed a $500,000 limit imposed on losses that flow through an entity to an individual. If you have a partnership or an S-Corp, you can loss as possible to offset current taxes or get a refund on taxes paid in previous years.
C-corps loss restrictions on carrying backs changed the periods for corporate loss allocations. It applies for 2018, 2019 and 2020. So, you go back and amend your tax filings for previous years and get refunds.
There is also a waiver on penalties for early withdrawal of as much as $100,000 from a retirement account. You can make it a loan or a withdrawal. There is a 60-day period before you have to declare it a withdrawal or a loan, so you can take the money and decide later. If it's a loan, the money must be repaid within 180 days.
Again, work with you CPA, Attorney or other tax experts for these items that may be available to you. This is a summary and you need expert advice on your tax decisions, especially during this quickly evolving set of options.