Option 1 Paycheck Protection Program: Businesses with fewer than 500 employees are eligible for up to $10 million in loans, which can be used for payroll and other expenses, such as insurance premiums, mortgage interest, rent or utilities. The loans would be completely forgiven if the employer continues to keep the employees or hires back those who already have been laid off and uses the funds for covered expenses. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums.
Option 2 Employee Retention Credit: This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.
Option 3 Employer Payroll Tax Delay: This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022
Important to note: Employers are able to take either the PPP Loan and Tax Deferral or the ERC and Tax Deferral. Employers cannot take the loan and the Retention credit together.