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08 May 2020

BREAKING TAX NEWS | IRS updates FAQs to allow health plan expenses for furloughed employees to be treated as qualified wages for the employer retention credit

The IRS updated FAQs 64 and 65 on the employee retention credit (ERC) to allow all employers to treat health plan expenses for furloughed employees who are not working or providing services due to COVID-19 as qualified wages for purposes of the ERC, provided that the expenses are allocable to the time the employee is not providing services. In addition, updated FAQ 79 clarifies that employers that repay a Paycheck Protection Program loan by May 14, 2020, are not disqualified from the ERC. A Tax Alert is forthcoming.

Document ID: 2020-9027

 

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