Grassley, Neal Lead Letter Urging Treasury to Alter Worker Retention Guidance
Senate Finance Committee Chairman Chuck Grassley (R-IA) and House Ways and Means Committee Chairman Richard Neal (D-MA) sent a letter to Treasury Secretary Steve Mnuchin urging him to reverse the Internal Revenue Services’ determination that employers who continue providing qualified health benefits to their employees can get the recently enacted Employee Retention Tax Credit unless they also pay these workers’ wages. The IRS issued Notice 2020-32 on April 30 which determined that otherwise deductible expenses that are paid with PPP funds and forgiven may not be deducted for federal income tax purposes
In the letter, the Chairmen of the House and Senate tax-writing committees noted “this interpretation runs directly counter to congressional intent” by denying the credit to employers who continue to provide health benefits to furloughed workers.
© 2021 Signatory Wall and Ceiling Contractors Alliance (SWACCA). All rights reserved.