Part 2 of 3 - Federal and State Emergency Small Business Programs

The chart below compares payroll tax credits and deferral options available at the federal level.  Please contact us with any questions.  This information is current as of 4/4/2020.

 

Program/ Benefit	Payroll Retention Credit	Payroll Delayed Deposit	Sick Pay	Emergency FMLA
Type	Payroll Tax Credit	Deferred payment	Payroll Tax Credit	Payroll Tax Credit
Purpose	Employer relief for keeping employees on payroll when business if fully or partially suspended	Employer relief for keeping employees on payroll	Mandatory pay protection for potentially ill employees (ill, quarantined, or seeking diagnosis) and caregivers (of ill, quarantined, or seeking diagnosis, or child(ren) whose school/place of care is unavailable)	Mandatory pay protection for employees who are caregivers of child(ren) whose school/place of care is unavailable due to COVID-19
Amount	50% of wages (including allocable health plan expenses) per employee, $5,000 max credit per employee	Employer's share of Social Security, no dollar limits	80 hours @ full pay, Max $511 daily wage ($5,110 total max), or 80 hours @ 2/3 pay, max $200 daily wage ($2,000 total max) if reason is for caregiving; also allocable health plan costs	10 weeks @ 2/3 pay, Max $200 daily wage ($10,000 total max) (first 2 weeks of 12 weeks unpaid under this program); also allocable health plan costs
Eligibility/ Eligible Expenses	Wages & health plan expenses	Pay 50% each by 12/31/2021 and 12/31/2022	Wages & health plan costs	Wages & health plan costs; must have been employed for 30 days
Applicable Dates	3/13/2020 - 12/31/2020	3/27/2020 - 12/31/2020	4/1/2020 - 12/31/2020	4/1/2020 - 12/31/2020
Restrictions	PPP Loans disqualify credit	PPP Loans disqualify benefit
Other Info	No duplication of Sick Pay or FMLA pay used for those credits; No credit available for any period for which employer is allowed a Work Opportunity Credit for the employee		Employer SS tax exempt (not Employee SS tax exempt), Medicare tax applies but employer portion is refundable under credit, Mandatory benefit Employer must post notice of availability	Employer SS tax exempt (not Employee SS tax exempt), Medicare tax applies but employer portion is refundable under credit, Mandatory benefit (12 weeks allowed with last 10 being paid), Employer must post notice of availability
Eligible Businesses	Operations partially or fully suspended as a result of government order limiting commerce, travel or group meetings, or 50% reduction in quarterly receipts from prior year	All businesses	Required for all business with 500 employees or less	Required for all business with 500 employees or less; potential exemption for businesses with 50 or fewer employees
Employee limits	100 or less no rules, >100 limits apply	None	500	500
Self Employed?	No	Yes	Yes	Yes
How to Apply	On payroll return or IRS Form 7200		On payroll return or IRS Form 7200	On payroll return or IRS Form 7200
Comments			Payroll tax credit is considered income to the employer	Payroll tax credit is considered income to the employer