Will the number of employees affects the credit on IRS Form 7200?
4.8k views | Last modified 5/27/2020 6:54:30 AM EST

Applicable To
94X 1099 W-2 ACA W-4

Yes. The credits are calculated based on the size of the workforce. Organizations with more than 500 employees cannot claim credit for qualified sick leave wages and family leave wages. However, they can still claim employee retention credits.

For employers that averaged 100 or less full-time employees in 2019, the credit is based on the qualified wages paid to all employees during these periods. Even if the employees is paid fully for their full-time work, the employer can still claim credits.

For employers that averaged more than 100 full-time employees in 2019, the credit is based on qualified wages paid to those employees not providing services due to the suspension of operations or decline in gross receipts.

To claim the advance payments on credits due to COVID-19, file the IRS Form 7200.

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