Shareholder eligible for Covid Sick Pay?

[Hoosier]

Is a 100% S-corporation shareholder eligible for Covid Sick Pay? In this case the business shut down for two weeks as the shareholder and all four of his employees had contracted the virus. They took the two weeks off to heal and quarantine. I know the employees are eligible but not sure about the shareholder.

[TAXNJ]

In addition to resource in The TaxBook another resource:

https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs-0

[Snaggletooth]

The link to IRS states that the credit is for COVID thru 12/31/20. Has this been extended??

[Gene V]

The link to IRS states that the credit is for COVID thru 12/31/20. Has this been extended??

This is from my update workbook.

Consolidated Appropriations Act, 2021 – Passed by Congress Dec. 21, 2020 and signed by the President Dec. 27, 2020 –
Includes changes to the Employee Payroll Tax Delay, Sick and Family Credits, and the Employee Retention Credit

Sick Leave and Family Leave
Credit has been extended through March 31, 2021 – Employer mandate and credit was due to expire December 31, 2020

[Snaggletooth]

Thanks Gene V. Interested in a plain "yes" or "no" answer to Hoosier's original question about whether a 100% S-corp shareholder qualifies. In the link provided by TAXNJ, I didn't read anything which would disqualify a shareholder...

[TAXNJ]

Thanks Gene V. Interested in a plain "yes" or "no" answer to Hoosier's original question about whether a 100% S-corp shareholder qualifies. In the link provided by TAXNJ, I didn't read anything which would disqualify a shareholder...

from DOL:

https://www.dol.gov/newsroom/releases/osec/osec20200320

another article:

https://www.bpbcpa.com/which-covid-19-related-payroll-tax-credits-is-my-business-eligible-to-receive-by-cherry-laufenberg-cpa/

[Snaggletooth]

Thanks TAXNJ - if you knew, I would have preferred a "yes'" or "no" instead of reading 20 minutes worth of links. But I did read them and thank you for providing them. I could find nothing in all that reading which disqualifies a 100% shareholder.

[TAXNJ]

Thanks TAXNJ - if you knew, I would have preferred a "yes'" or "no" instead of reading 20 minutes worth of links. But I did read them and thank you for providing them. I could find nothing in all that reading which disqualifies a 100% shareholder.

Thank you. Rather you have the legal, code and other professional references for your applicable determination of a “ yes or “no” for your support.

Think for you that would be a better reference than saying a reply poster on the The TaxBook, just stating “yes” or “no”, without a reference, as your only support.

[Rapid Robert]

Interested in a plain "yes" or "no" answer to Hoosier's original question

I figure that if someone is able to get into this forum to post a question, they are already a customer of TheTaxBook and are able to perform simple search and navigation of the documents they have access to. I also assume they are able to conduct simple internet searches. So in my opinion, simply providing a link to a generic document without any interpretation or comment is rarely helpful, since the poster could have (and maybe already has) found those links themself.

It seems the value of participating in this forum (or other similar tax pro discussion forums) is getting insight from experienced colleagues as to how the tax law applies to the specific scenario they are asking about. To provide such insight requires a bit of courage, because there is always the chance you might be wrong, or omit some important aspect of the law as it applies to the situation. I welcome corrections when I am wrong, so mustering the courage in my case isn't that hard. But if you never provide an opinion, you are safe because then you never have to defend it, whether you cite a source for support or not.

[Snaggletooth]

For myself, I have been a customer of the Tax Book since it began in 2005, and regard myself as somewhere "in the middle" as far as expertise. There are obviously people who know more than myself, and there have been others, mostly neophytes, whom I have been able to help. There have been occasions when, by simply asking a question, I have shown my ignorance. I don't know whether that makes me courageous and don't really give that attribute a second thought.

The good and bad about links: They bring authoritative language to the subject, and often provide citations that people want. But they also require interpretation of language which is often stilted and confusing. This is true especially of IRS regulations which are full of cross-references, such that you may have to chase down the cross references to understand what the regulation is saying. For example, I have read all three of the references provided by TAX NJ, which consumed 30 minutes of good reading, and after that I still don't know whether a 100% shareholder is entitled to COVID relief or not on the 941. The reading did not disqualify such a shareholder, so I have to assume there is nothing to prevent it.

I have returned to the forum after a long absence. At one point, there were 2-3 smart-alecks that were making participation so miserable that several long-standing members left, including myself. It doesn't look like those disruptive people are still around, so I will enjoy being back.