Five Business Tax Breaks Available During COVID-19
Running a company during COVID-19 has been challenging for millions of entrepreneurs across the country. Consequently, the government has stepped in with a stimulus package to provide tax rebates and safeguard employment.
However, many business owners and their employees are unaware of all the benefits available during these unprecedented times.
At Findon & Associates, we understand the financial pain points that entrepreneurs are currently facing and want to provide guidance so that they can receive maximum benefits from the various programs available to them. In this endeavor, we have compiled a list of five business tax breaks available during COVID-19.
1. Paycheck Protection Program (PPP) Loan
Typically, a business loan that has been forgiven is still liable for tax. However, due to COVID-19, the Paycheck Protection Program Loan is not taxable.
2. Employee Retention Payroll Tax Credits (ERC)
The CARES Act encourages employers to keep their staff on the roster even during the pandemic. Consequently, for every full-time employee, a business can receive refundable tax credit each quarter.
3. SBA (Small Business Administration) Restaurant Revitalization Fund
The Restaurant Revitalization Fund provides a much-needed lifeline for food establishments that have faced considerable hardships over the past year due to the lockdown. This fund helps to cushion the blow for many eateries that are in financial distress.
If employees were made redundant in 2020, then they can receive an unemployment tax break. It will ensure that the IRS will not tax a large portion of the benefits they received.
5. SBA EIDL Loan
The Economic Injury Disaster (EIDL) Loan was created to bring relief to small businesses during the pandemic. The borrowed money can be paid back over decades and has a low interest rate.
We hope these five programs helped you make more informed decisions about receiving business tax breaks in the upcoming season. If you need professional guidance, get in touch with us today. At Findon & Associates we are a top accounting firm in Pittsburgh, Pennsylvania, dedicated to rendering personalized services regarding tax and accounting. We also offer payroll services to our clients. We serve clients across Pittsburgh, Monroeville, Oakmont, New Kensington, Homestead, and Murrysville, Pennsylvania.