IRS updates, expands FAQs on employee retention credit (COVID-19)

IRS updates, expands FAQs on employee retention credit

The IRS today updated and expanded a list of “frequently asked questions” (FAQs) concerning the employee retention credit that is available as a relief measure in response to the coronavirus (COVID-19) pandemic.


Related content

Read the new FAQs as posted on a dedicated IRS webpage.


The employee retention credit—included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136)—is a refundable payroll credit of 50% of qualified compensation paid by eligible employers whose business has been financially affected by COVID-19.  Qualified compensation is limited to the first $10,000 of compensation, including health benefits, paid to the employee. Thus, the maximum credit is $5,000 (50% x $10,000) per employee.

The IRS on March 31, 2020, released an initial set of FAQs concerning the employee retention credit. Read TaxNewsFlash. The Senate Finance Committee also on March 31, 2020, released a set of 12 FAQs on the employee retention credit. Read TaxNewsFlash

Today’s FAQs include approximately 90 new sets of questions and answers regarding the employee retention credit under the CARES Act. The FAQs (updated April 29, 2020) also include this statement:

This FAQ is not included in the Internal Revenue Bulletin, and therefore may not be relied upon as legal authority. This means that the information cannot be used to support a legal argument in a court case.

The purpose of this report is to provide a link to the new FAQs.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal