COVID salary credit

Technical topics regarding tax preparation.
#1
jon  
Posts:
1535
Joined:
3-May-2014 11:11am
Location:
minnesota
small restaurant, 5 employees (1 part time 25 hours), they are doing "take out" only. The part time worked a week ago Friday, called in and was told someone at his other job had tested positive and he went for testing and was positive. Tracing made the operation close down for 10 days(employees quarantined). All four of the other employees were tested and all OK, but they are closed for the 10 days. Client will pay them their regular salary. The other 4 are full time employees, one of the four did not work on the Friday that the sick employee was in. Do all 5 of the employees qualify the payroll credit, operation is closed. The one not working on Friday has no ability to work at the restaurant ??

Where/how do you get the credit for health insurance the employer is paying for them?
 

#2
jon  
Posts:
1535
Joined:
3-May-2014 11:11am
Location:
minnesota
It was the manager who did not get quarantined - the State MN told him he would not have to quarantine and he could just get friends to HELP him. He was not interested in trying to keep it open and that was fine with the owner who will continue his salary and not go for the credit on his. Both the manager and the owner are starting to think this may not be worth it. It was a great operation and doing well, but it is getting tough on them to continue - manager 61, owner is 71.

I still do not know where to go for credit on health insurance??? Does it just become part of the credit if there was any withholding for it, but now employer is paying for all of it??
 

#3
Joan TB  
Posts:
1897
Joined:
21-Apr-2014 9:08am
Location:
Texas
See line 2b of Worksheet 1 that goes with the Q3-2020 Form 941. (It is with the 941 instructions, not with the Form 941.)
 


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