Q. Are there any COVID-related tax incentives that could benefit employers and employees?

A. Employers and employees alike continue to feel the impact of the COVID-19 pandemic. Many employers have reduced revenues and need to conserve resources. Many employees have been furloughed or permanently laid off and may need to prematurely access vested retirement benefits to make ends meet. Other employees need leave from work due to their own or a family member’s COVID-related illnesses. COVID-related tax incentives fall into two broad categories: incentives that advantage employers and incentives that advantage employees. Our Firm’s prior alert, Revised Summary of CARES Act and FFCRA Tax Credit and Payroll Tax Relief, provides an overview of the tax advantaged programs that are available to employers. These generally advantage the employer by providing a credit to the employer’s payroll taxes or by providing a low interest loan to the employer. There are also programs that an employer can implement that can save the employer money in the short- and long-term. In addition, there are programs that ease an employee’s access to amounts the employee has accrued under an employer’s tax qualified retirement program, and others that permit employers to provide employees with certain special benefits during these difficult times. Employees can even provide assistance to others impacted by COVID-19 through leave sharing/donation programs. Each program is outlined below.