Share with your friends

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.


Related content

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 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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