qbteachmt
Level 15

On April 6 for Q1? Make sure to read everything in this topic:

https://www.irs.gov/instructions/i7200

There are three things covered there:

Wages paid after March 12; Leave/sick pay from April 1; and whether you held back the qualifying amount for the credit (not for the Deferral reason), and if that was enough or you are entitled to more (more = form 7200).

If you have made Q2 payroll payments, you can keep these withheld funds against the qualifying credit. If there are not enough withholding funds to meet your likely credit, you would file the Form 7200.

"As described earlier under Background, instead of filing Form 7200, you should first reduce your employment tax deposits to account for the credits. You can request the amount of the credit that exceeds your reduced deposits by filing Form 7200 or waiting to get a refund when you claim the credits on your employment tax return."

"When May You File?

The employer tax credits for qualified sick leave wages and qualified family leave wages apply to those wages paid for the period from April 1, 2020, to December 31, 2020.

The employer tax credit for qualified wages for retention of employees during suspension of operations due to a government order or due to a significant decline in gross receipts applies to those wages paid after March 12, 2020, and before January 1, 2021. The credit due to a significant decline in gross receipts is available for the period beginning with any quarter in which your gross receipts are less than 50% of what they were in the same calendar quarter in 2019 and ending with the quarter that follows the first quarter beginning after the quarter in which your gross receipts were greater than 80% of what they were in the same calendar quarter in 2019.

You can file the form for an advance payment of the credits anticipated for a quarter at any time before the end of the month following the quarter in which you paid the qualified wages. If necessary, you can file Form 7200 several times during each quarter. Don’t file Form 7200 after you file Form 941 for the fourth quarter of 2020, or file Form 943, 944, or CT-1 for 2020. Don’t file the form to request an advance payment for any anticipated credit for which you already reduced your deposits."

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