2020 Updates and Highlights:
New legislation allows employers to qualify for ERTC in 2020 even if they received a PPP Loan. (You can not use the same wages for a ERTC as wages used for PPP Forgiveness)
You may receive 50% of an employee's wages up to $10,000 paid after March 12, 2020 through December 31, 2020.
Qualification Requirements (EITHER OR - NOT BOTH):
50% reduction of gross receipts in a any quarter of 2020 compared to 2019
Business was fully or partially shut down by a COVID lockdown order. NOTE: You can only claim wages paid during the lockdown period.
For our clients, we will prepare your amended 941s as required in order to go back and obtain ERTC in 2020.
Employee Retention Tax Credit 2021 Revised program offered for 1st and 2nd Quarter of 2021!
New legislation allows employers to qualify for ERTC in 2021, even if they receive a PPP loan in 2021. (You can not use the same wages for a ERTC as wages used for PPP Forgiveness)
You may receive 70% of an employee's wages up to $10,000 paid in 1st Quarter 2021 AND 2nd Quarter 2021.
Qualification Requirements will be by Quarter
1st Quarter 2021 (EITHER OR - NOT BOTH)
20% reduction of gross receipts in 1Q 2021 compared to 1Q 2020
Business was fully or partially shut down by a COVID lockdown order. NOTE: You can only claim wages paid during the lockdown period
1st Quarter 2021 (EITHER OR - NOT BOTH)
20% reduction of gross receipts in 2Q 2021 compared to 2Q 2020
Business was fully or partially shut down by a COVID lockdown order. NOTE: You can only claim wages paid during the lockdown period
It is important that your anticipation of qualification is review so you can be sure you are tracking these qualifications each quarter. If this sounds like a lot, know we at Comprehensive AHR are here to help. Give us a call today and we can handle this all for you! We are closely monitoring all the official releases regarding this legislation. We are waiting on further guidance and a few clarifications before we proceed with any 2020 941 amendments.
If you believe your business would qualify in 2020 due to continuing to employee during a full or partial shut down by a lock down order, I will need the exact dates of the orders applicable to your business in order to evaluate your qualifications further. Please email this information as soon as possible so I can be prepared as further official releases become available.