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KPMG report: Employer-related liquidity—tax credits, deferrals, and efficiencies (COVID-19)

KPMG report: Employer-related liquidity

As a result of new U.S. legislation as well as existing rules, there are several employer-related tax credits, deferrals, and efficiencies providing economic stimulus that encourage cash retention and provide additional benefits for businesses affected by the coronavirus (COVID-19) pandemic.

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A report prepared by KPMG examines select labor-related tax provisions of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), the “Families First Coronavirus Response Act (FFCRA) and provisions triggered by the COVID-19 National Emergency Declaration.

  • The CARES Act includes a payroll tax credit for qualified wages paid by employers during a partial or full suspension or after significant downturn; the deferral of certain payroll and self-employment taxes; as well as enhanced employee retirement and benefit provisions.
  • The FFCRA provides for two new payroll tax credits for paid leave for certain employers with less than 500 employees to offset mandatory paid FMLA and sick leave. 


Read an April 2020 report [PDF 949 KB] (13 pages) prepared by KPMG LLP 

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