Small Businesses and Paid Coronavirus Leave

There are new credits available to small businesses intended to cover the costs of paying for leave to employees who either have coronavirus or have to care for a child. They are geared to the larger end of “small business” and, in fact, businesses with less than 50 employees are not obligated to provide leave. Larger businesses MUST provide paid leave. I don’t see how it’s going to help the very small businesses who need it the most because those businesses are too small to support the cost the way it’s written. There are a lot of self-employed, employee-shareholders and LLC partners/SEs who are even more vulnerable but no details about exactly how that’s going to be financed are published at this point. The money comes out of 941 deposits you’d normally send to the IRS but that means you have to have a LOT of employees working to have those withheld tax funds available.

Hopefully, more details will be forthcoming.
https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus