Going back to the early months of 2021 with the COVID virus raging.
Announced abundantly in press releases, employers could receive full payroll tax credit if they paid wages to employees sick with COVID. There were limits to the number of days per employee, and a cap on wages paid, but the discussion was valid nonetheless.
When the first quarter 2021 941 was released, the "COVID Wages" were to be reported on a certain Sick Leave line, and there was worksheet released to calculate the credit. I followed the worksheet meticulously, and discovered the only credit made available was the Medicare portion of the payroll taxes. This was only a drop in the bucket compared to the total payroll taxes which would have been calculated on the COVID pay. I am certain I followed the worksheet meticulously, and repeated the exercise several times because I couldn't believe how small the credit was.
Now here it over a year later. On July 5th of 2022, this customer received a check from the IRS for the remaining portion of the credit (i.e. the Social Security portion) that we had expected earlier. For purposes of discussion, let's assume the credit we took was $600 and the additional refund was $5000.
The question: What is going on - is this happening to other employers? Did I miscalculate the worksheet, or am I losing my mind?
Announced abundantly in press releases, employers could receive full payroll tax credit if they paid wages to employees sick with COVID. There were limits to the number of days per employee, and a cap on wages paid, but the discussion was valid nonetheless.
When the first quarter 2021 941 was released, the "COVID Wages" were to be reported on a certain Sick Leave line, and there was worksheet released to calculate the credit. I followed the worksheet meticulously, and discovered the only credit made available was the Medicare portion of the payroll taxes. This was only a drop in the bucket compared to the total payroll taxes which would have been calculated on the COVID pay. I am certain I followed the worksheet meticulously, and repeated the exercise several times because I couldn't believe how small the credit was.
Now here it over a year later. On July 5th of 2022, this customer received a check from the IRS for the remaining portion of the credit (i.e. the Social Security portion) that we had expected earlier. For purposes of discussion, let's assume the credit we took was $600 and the additional refund was $5000.
The question: What is going on - is this happening to other employers? Did I miscalculate the worksheet, or am I losing my mind?