Small Business customers impacted by COVID-19 can claim tax credits for eligible employees kept on payroll directly in the Justworks platform
NEW YORK — June 17, 2020 - Justworks announced the launch of a new tool as part of its in-app COVID-19 relief center. The Employee Retention Tax Credit tool is the next step in a series of product developments made to ensure small businesses can navigate and easily take advantage of government COVID-19 relief programs. This program helps them to keep employees on payroll by providing tax credits up to $5,000 per eligible employee, on qualified wages paid between March 13, 2020, and December 31, 2020.
To help with COVID-19 relief, the Employee Retention Tax Credit, created through the Coronavirus Aid, Relief and Economic Security (CARES) Act, allows eligible employers to receive a credit up to 50 percent of qualified wages, including allocable qualified health expenses. The application of credits is determined quarterly and will be capped at $5,000 per eligible employee. To date, the focus for most small businesses impacted by COVID-19 has been to apply for a Paycheck Protection Program (PPP) loan instead of pursuing relief through tax credits. This was due to the eligibility requirements outlined in the CARES Act. Leveraging the tax credit is mutually exclusive to a business’s eligibility to participate in the PPP program.
“Our focus at Justworks is on helping small businesses navigate government complexities of all shapes and sizes. Unforeseen challenges facing customers, have made it ever more important for us to be able to rapidly deploy tools that open up access to alternative relief,” said Yujin Kim, Vice President of Engineering at Justworks. “This new tool for accessing the Employee Retention Tax Credit, alongside our existing suite of software features for navigating COVID-19 relief, handles the complex work for our customers, so they can focus on running their business and keeping their teams intact.”
The Employee Retention Tax Credit tool provides a timely, alternative source of finalice relief for small businesses. The tool is now live for Justworks customers who are eligible to participate in the relief program under the CARES Act. More information on how this tool works for customers can be found online in the Justworks help center. As new and active government relief programs continue to progress to support small businesses across America, Justworks will continue to apply its software and expertise to make them as accessible as possible for customers.
About Justworks: Justworks makes it easier to start, run, and grow a business. Founded in 2012, Justworks, the fastest growing HR technology company, is a modern support system for work and life. With Justworks, entrepreneurs and their teams get access to big-company benefits, automated payroll, compliance support, and HR tools—all in one place. By combining the power of a Professional Employer Organization (PEO) with expert 24/7 customer service and a simple and intuitive platform, Justworks gives teams of all sizes the confidence to work fearlessly. To learn more, visit justworks.com, follow us on Twitter @JustworksHR and Instagram @Justworks_HR.