PPP & Family Sick Leave Interplay? - Spidell

PPP & Family Sick Leave Interplay?

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Message Board PPP & Family Sick Leave Interplay?

  • This topic has 1 reply, 2 voices, and was last updated 1 week, 2 days ago by Mike Giangrande.
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    • #266308
      Anonymous
      Member

      Is an employer prohibited from taking the Family / Sick Leave Tax Credit on their Quarter 2 Form 941 if they received a PPP loan a month after they paid the COVID-19 sick pay?

      On their 4/1/20 payroll, client paid 40 hours (per employee) for COVID-19 sick leave since employees were quarantined (CA quarantine order) from 3/16/20 – 3/31/20.  On May 1st, they finally received a PPP loan.

      Will any of this prohibit them from claiming the Family / Sick Leave Tax Credit on their Quarter 2 Form 941?

      Thank you.

    • #266541
      Mike Giangrande
      Participant

      Anonymous,

      The payroll tax credits for mandatory paid family leave and paid sick leave provided by the Families First Coronavirus Response Act (FFCRA) are completely independent of the PPP loans. You can claim these credits whether or not you receive a PPP loan, even if the PPP loan is forgiven.

      It is only the Employee Retention Credit, which was created under the CARES Act that interplays with the PPP loans.

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