For a 60 day period last spring many businesses were ordered closed by the Governor. The Form 7202 instructions say you can claim a credit "if you were subject to federal, state, or local self-quarantine or isolation order related to Covid-19." Does anyone know for certain if .being forced to close by government order is equivalent to an isolation order.
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While a stay-at-home-order is considered as part of an isolation order (see the bottom of my response), I don't think your situation qualifies.
To qualify for 7202, the Self Employed person needs to qualify based on the rules for employees/employers. While the rules sometimes are not clear in the case of Self Employed people, this FAQ #27 seems to indicate your taxpayer would NOT qualify.
If my employer closes my worksite on or after April 1, 2020 (the effective date of the FFCRA), but tells me that it will reopen at some time in the future, can I receive paid sick leave or expanded family and medical leave?
No, not while your worksite is closed. If your employer closes your worksite, even for a short period of time, you are not entitled to take paid sick leave or expanded family and medical leave. However, you may be eligible for unemployment insurance benefits. This is true whether your employer closes your worksite for lack of business or because it was required to close pursuant to a Federal, State, or local directive. You should contact your State workforce agency or State unemployment insurance office for specific questions about your eligibility.
As for your original question, that is mentioned in FAQ #60:
How do I know if I can receive paid sick leave for a Federal, State, or local quarantine or isolation order related to COVID-19?
For purposes of the FFCRA, a Federal, State, or local quarantine or isolation order includes quarantine or isolation orders, as well as shelter-in-place or stay-at-home orders, issued by any Federal, State, or local government authority that cause you to be unable to work (or to telework) even though your employer has work that you could perform but for the order. You may not take paid sick leave for this qualifying reason if your employer does not have work for you as a result of a shelter-in-place or a stay-at-home order. In the instance where your employer does not have work for you as a result of a shelter-in-place or a stay-at-home order, please see Questions 23-27.
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Check out the EE Retention Credit.
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The Employer Retention Credit language is very clear. However these self-employed people do not have employees so that is not on the table.Comment
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The ERC does apply to SE now. I think it's Form 7202. But I haven't had that situation, yet, so research.Comment
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Originally posted by Lion View Post
Unless I completely missed it, no, the ERC does NOT apply to the earnings of Self Employed people. It only applies to employees (including employees OF self employed people). As far as I know, nothing has changed in that regard.Comment
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So, true. SE qualify for the FFCRA and use Form 7202. Not ERC. Too many acronyms!Comment
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