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Payroll Tax Credits

Any clarification on the Coronavirus Response Act for the employer tax credit, I would like to know do we exempt from the employer share of FICA when we process the payment in payroll?
how do employers receive the credit?
1. Employers will receive tax credits under the Coronavirus Tax Relief.
2. In another section I read the amounts paid under this Act by employer for mandatory sick leave or family leave under the act are exempt from the employer’s share of FICA.


  • limo19limo19 ✭✭

    The Corona-virus Response Act for the employer tax credit,

  • kikikiki ✭✭

    We can defer Social Security Tax ER portion and have to repay1/2 of it by 12/2021 and remainder by 12/2022.

  • I'm sure most of you know this by now but just in case someone missed it----

    Form 941 has been revised - it added lines in the employment tax computation section (lines 5a (i) and 5a (ii) to compute only the employee share of Social Security - leaving the employer share out of the computation. There is also a worksheet (in the instructions) for calculating the non-refundable and refundable portion of the qualified sick and family leave payments and employee retention credit, as well as lines on the Form 941 for factoring in those credits into the computation of employer tax liability. There is also a line to take into account advance credits received from Form 7200 and a section on other information required related to the credits - such as medical expenses allocated to sick and family leave credits and qualified wages.

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