On Friday, the IRS and DOL announced a plan to implement the tax credit provisions under the Families First Coronavirus Relief Act. Here’s the link to the press release: https://www.dol.gov/newsroom/releases/osec/osec20200320
Importantly, under guidance to be released this week, “eligible employers who pay qualifying sick or child-care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child-care leave that they paid, rather than deposit them with the IRS.”
The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes and the employer share of Social Security and Medicare taxes with respect to all employees.
If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less.