Potential Tax Break for Training Employees During COVID-19
With Covid-19 and its effects still looming, many Americans are hesitant to return to work, even if given the option. However there are others that have never stopped going to the office every day, or have had to go back because their business depends on it. This means that employees in various industries will have to learn the best and most relevant ways to prevent the coronavirus’s spread at the workplace.
This necessary education and training can be challenging for most businesses because of the added expense. Companies of all sizes took financial hits during the pandemic, and many do not have the extra money to spend.
A new bill has been proposed (but not yet passed) called “The Businesses Preparing for a Better Tomorrow Act”. It was written to help business owners keep everyone safe while also keeping their business open by providing a tax credit for eligible employers.
The Businesses Preparing for a Better Tomorrow Act
H.R. 8260 – The Businesses Preparing for a Better Tomorrow Act would provide tax breaks to employers who use their time and money to educate their staff on the safest practices. Examples of covered expenses would be any amount paid to a hired professional whose goal is to train employees on the best industry practice to stop the virus’s spread, based on CDC guidelines.
Eligible employers are any business owners who, between March 12, 2020, and January 21, 2021, hired workplace training to reduce the coronavirus spread. This bill would give them credit each quarter for 50% of their total spending on the training.
Current CDC Guidelines for Businesses and Workplaces
As previously mentioned, under this new bill, employers could hire trained professionals to educate their staff, and then receive a tax break for doing so. But some may wonder, what exactly does this training entail?
According to the CDC (Center for Disease Control), businesses must be up to date on all local, state, and federal protocols, identify specific jobs or risks within your field that may expose someone to COVID-19, and then implement changes to reduce the spread. Hiring a professional to come in and assess your business is an excellent method to utilize. Bringing in a person who is trained in all things Covid-19 will help you keep your business, employees, and customers safe, and you can receive a tax break for it as well.
Another positive change to come from this bill would be the creation of jobs. There will be an increased demand for trained professionals who know how to educate large groups of people. This will be a great addition to the American economy and will give more people in the healthcare field the ability to obtain a job within their skill set while providing a vital service.
Our goal here at Taurus is to provide unique insights from a completely objective perspective while guiding your business to new heights. We hope you found this information helpful, and if you’d like to learn more about how we can help you, please Contact Us online or give us a call at (410) 465-4600.