The CARES Act provides a payroll retention tax credit. For 2020, the credit was up to $5,000 for the year (March 13 - December 31, 2020). For banks with over 100 employees, the credit was challenging to use in some cases. The Appropriations Act of 2020 greatly expands the availability of the tax credit.
Moreover, it increases the credit up to $7,000 per employee per quarter for the first two quarters of 2021. We will discuss the significant changes to the tax credit both for banks and for their customers. We will also cover some of the governance issues associated with taking the tax credit.