Families First Coronavirus Response Act: How to Calculate Tax Credits

Author: Greg White

Join expert Greg White, CPA, as he covers the new Families First Coronavirus Response Act signed in to law on March 18, 2020. Included will be detailed computations of the credit calculations. Learn how to determine which taxpayers qualify for the credits (both employers and self-employed persons) and the limitations that apply to the credits.

Publication Date: March 2020

Topics Covered

• Which Employers Are Covered?
• When Sick Leave Must Be Paid
• When Emergency Family Medical Leave Must Be Paid
• Sick Leave Category (5) and Family Leave
• There are Four Credits
• Our Role
• Mechanics of Employer Credit
• Employer Tax Credits Summary & Examples
• Health Insurance Portion of Credit & Examples
• Employer Tax Benefits
• Self‐Employed Credit & Examples
• IRS Will Make Credit Payments Fast
• Who Gets the Benefit? Employer, Employee, or SE?
• Effective Date
• Gross Income Add Back
• Other Matters
• DOL Sick Pay and Family Leave —Enforcement
• Upcoming Guidance

Learning Objectives

• Calculate the credit for employers and self-employed persons
• Recognize how to determine which clients qualify for the credits
• Recognize related areas to the Families First Act under the jurisdiction of the IRS
• Identify a situation when emergency family medical leave must be paid
• Recognize which Act Section relates to employer required paid sick leave
• Differentiate the categories of employer tax credits and the max credit
• Identify the steps in computing the self-employed credits
• Identify correct statements regarding regarding the Families First Tax Credit and the issuance of refunds
• Recognize postponed filing dates of Forms

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of tax preparation

Advance Preparation
None