ARTICLE
The Families First Coronavirus Response Act (FFCRA) is a federal law (Public Law No. 116-127) that was enacted to assist people impacted by the pandemic by providing paid leave and other benefits. As part of the American Rescue Plan Act of 2021, FFCRA was extended to include self-employed individuals. Similar to the Employee Retention Tax Credit available to business owners, there exists a tax credit for qualifying self-employed individuals classified as 1099 contractors nationwide. Because this COVID relief is wrapped into a complex bill that Congress passed many months ago, there is little awareness right now of the opportunity for self-employed individuals to potentially receive monetary refunds on their 2020 and 2021 taxes. The FFCRA will provide self-employed individuals with up to $32,220 in refundable tax credits for emergency paid sick leave and expanded family and medical leave due to the COVID pandemic. Individuals who work as independent contractors, freelancers, gig workers, single-member LLCs, and sole proprietors are hard-working entrepreneurs who have faced significant challenges during the COVID-19 pandemic. These individuals often have single incomes and have encountered difficulties in meeting their financial obligations due to business closures and the absence of childcare during COVID. Some examples of self-employed careers that could qualify for these federal tax credits include: • Gig economy worker like Grub Hub delivery driver, etc. • Rideshare driver • Designer • Social media expert • Personal trainer • Housekeeper • Massage therapist • Hair stylist • Freelancer • Food or product delivery • Handyman • Independent contractor • Landscaper • Makeup artist If independent contractors missed work time due to the following reasons, they can qualify for tax credits of up to $32,200: Quarantine • Federal, state, or local lockdown orders related to COVID-19 Childcare • Caring for your child whose school closed or went virtual • Caring for your child because your normal childcare provider was unavailable due to COVID-19 Illness • Symptoms of COVID-19 or seeking a medical diagnosis • Sickness due to vaccination side effects • Caring for someone with COVID-19 symptoms Vaccination • A COVID-19 vaccination appointment • Side effects due to vaccination April 15, 2024 is the deadline to file for 2020 claims and April 15, 2025 is the deadline to file for 2021 claims. It appears that there isn’t much awareness about this program which means self-employed individuals in Wisconsin may be leaving money on the table that could help sustain their small business. It can be daunting for self-employed individuals to determine whether they qualify and apply for this credit. The Wisconsin Restaurant Association, along with their partner Adesso, has been instrumental in assisting Wisconsin's restaurants and other hospitality establishments in reclaiming millions of dollars through the Employee Retention Tax Credit, also part of the government’s COVID relief efforts. The restaurant industry underwent significant challenges and setbacks during the pandemic. As a result of their work on the ERTC, the Wisconsin Restaurant Association, has partnered with Adesso which has a turnkey program to provide expert assistance to self-employed individuals with the submission of their FFCRA tax credit applications to the IRS. Self-employed individuals who may qualify for this tax credit can visit Adesso’s portal at portal.ffcrarefund.com/pre-qualify/?partnerID=WRA to determine eligibility and calculate tax credits. Full Disclosure: There is a filing fee charged by Adesso for successful tax credit claims. While the Wisconsin Restaurant Association does receive a small referral commission from Adesso for any successful FFCRA tax credit as a result of their promotion efforts, their main goal is to increase awareness of this tax credit among self-employed individuals including restaurant delivery drivers. # # #
The Families First Coronavirus Response Act (FFCRA) is a federal law (Public Law No. 116-127) that was enacted to assist people impacted by the pandemic by providing paid leave and other benefits. As part of the American Rescue Plan Act of 2021, FFCRA was extended to include self-employed individuals.
Similar to the Employee Retention Tax Credit available to business owners, there exists a tax credit for qualifying self-employed individuals classified as 1099 contractors nationwide.
Because this COVID relief is wrapped into a complex bill that Congress passed many months ago, there is little awareness right now of the opportunity for self-employed individuals to potentially receive monetary refunds on their 2020 and 2021 taxes.
The FFCRA will provide self-employed individuals with up to $32,220 in refundable tax credits for emergency paid sick leave and expanded family and medical leave due to the COVID pandemic.
Individuals who work as independent contractors, freelancers, gig workers, single-member LLCs, and sole proprietors are hard-working entrepreneurs who have faced significant challenges during the COVID-19 pandemic. These individuals often have single incomes and have encountered difficulties in meeting their financial obligations due to business closures and the absence of childcare during COVID.
Some examples of self-employed careers that could qualify for these federal tax credits include: • Gig economy worker like Grub Hub delivery driver, etc. • Rideshare driver • Designer • Social media expert • Personal trainer • Housekeeper • Massage therapist • Hair stylist • Freelancer • Food or product delivery • Handyman • Independent contractor • Landscaper • Makeup artist
If independent contractors missed work time due to the following reasons, they can qualify for tax credits of up to $32,200:
Quarantine • Federal, state, or local lockdown orders related to COVID-19 Childcare • Caring for your child whose school closed or went virtual • Caring for your child because your normal childcare provider was unavailable due to COVID-19 Illness • Symptoms of COVID-19 or seeking a medical diagnosis • Sickness due to vaccination side effects • Caring for someone with COVID-19 symptoms Vaccination • A COVID-19 vaccination appointment • Side effects due to vaccination
April 15, 2024 is the deadline to file for 2020 claims and April 15, 2025 is the deadline to file for 2021 claims.
It appears that there isn’t much awareness about this program which means self-employed individuals in Wisconsin may be leaving money on the table that could help sustain their small business.
It can be daunting for self-employed individuals to determine whether they qualify and apply for this credit.
The Wisconsin Restaurant Association, along with their partner Adesso, has been instrumental in assisting Wisconsin's restaurants and other hospitality establishments in reclaiming millions of dollars through the Employee Retention Tax Credit, also part of the government’s COVID relief efforts. The restaurant industry underwent significant challenges and setbacks during the pandemic.
As a result of their work on the ERTC, the Wisconsin Restaurant Association, has partnered with Adesso which has a turnkey program to provide expert assistance to self-employed individuals with the submission of their FFCRA tax credit applications to the IRS. Self-employed individuals who may qualify for this tax credit can visit Adesso’s portal at portal.ffcrarefund.com/pre-qualify/?partnerID=WRA to determine eligibility and calculate tax credits.
Full Disclosure: There is a filing fee charged by Adesso for successful tax credit claims. While the Wisconsin Restaurant Association does receive a small referral commission from Adesso for any successful FFCRA tax credit as a result of their promotion efforts, their main goal is to increase awareness of this tax credit among self-employed individuals including restaurant delivery drivers.
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