Tax Alert: President Signs Stimulus Package with Employee Retention Tax Credit

The $2 trillion stimulus package, referred to as the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), has been signed into law.

As we alerted you to yesterday, the Act includes a refundable employee retention credit of 50% of qualified wages paid during a period of coronavirus impact. Because there are various types of eligible periods of coronavirus impact, and various types of eligible wages (including an employer’s qualified health plan expenses), we look forward to working with our clients to analyze the applicability and utility of this newly enacted tax credit.

Please reach out to your First Advantage Tax Account Consultant, or your company’s tax advisor or legal counsel, to discuss the ongoing tax-related impacts of coronavirus.