Stimulus money, small business loans and grants for the airlines are only pieces in the massive relief package that is the CARES Act. Among other things, the package includes tax benefits to aid in business recovery from the economic disruption caused by the coronavirus pandemic. The cornerstone of the tax benefits, businesses are allowed to offset 100% of the prior year’s net operating loss. The carryback period has also been extended from three years to five years.

The relief package also includes a temporary payroll tax credit tax credit. “The temporary tax credit encourages employers to pay wages if their business is forced to fully or partially suspend operations due to a government order, or the business experiences more than a 50% decline in gross receipts as compared to the same calendar quarter in 2019,” Phil Jelsma, a partner at Crosbie Gliner Schiffman Southard & Swanson, tells “The credit is on employment or payroll taxes equal to 50% of each employee’s qualified wages for the calendar quarter capped at $10,000 per employee for all calendar quarters taken together. If the employer has a 100 or fewer employees, all employee wages are considered qualified wages. For employers with more than 100 employees, qualified wages are limited only to those wages paid to employees who are not providing any services due to the operations being suspended by a governmental order.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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