As providers recover from the pandemic and prepare for a post-pandemic world, having extra cash on hand is critical. One source of funding that many providers are not aware of is federal tax credits for the 2022 tax year. Both the Employee Retention Tax Credit (ERTC) and Families First Coronavirus Response Act (FFCRA) are programs where child care providers have a high probability of eligibility and these tax credits can supply much-needed cash.
To learn more about the ERTC tax credit and the FFCRA tax credit, click on the link below. This will take you to a recorded call regarding these tax credits and provides more in depth information:
You can also view the slides from this webinar here:
Want to see if you qualify for the ERTC and FFCRA tax credit? Here is information to guide you towards utilizing these tax credits for relief:
These resources were provided by: (https://mailchi.mp/5f62cdd56e0a/webinar-invitation-federal-support-opportunities-for-child-care-providers-1622418)
“The Families First Coronavirus Response Act (the “FFCRA”), as amended by the COVID-related Tax Relief Act of 2020, provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
“The FFCRA gives businesses with fewer than 500 employees (referred to throughout these FAQs as “Eligible Employers”) funds to provide employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members. Workers may receive up to 80 hours of paid sick leave for their own health needs or to care for others and up to an additional ten weeks of paid family leave to care for a child whose school or place of care is closed or child care provider is closed or unavailable due to COVID-19 precautions. The FFCRA covers the costs of this paid leave by providing small businesses with refundable tax credits. Certain self-employed individuals in similar circumstances are entitled to similar credits.
For FAQs, see “Basic FAQs,” and the sections that follow. The FAQs will be updated to address changes in the law or additional questions as they are raised.”