Employee Retention Credit
1/6/21 – With the Consolidation Appropriations Act of 2021 that was passed, employers who received PPP funding may now qualify for an additional payroll credit, the Employee Retention Credit. However, the wages paid with PPP funding may not be the same wages used for the credit. This credit can be up to $5,000 per employee for the 2020 calendar year. To qualify for the credit your business must have been fully or partially suspended due to a COVID-19 lockdown order or gross receipts must have declined by 50% compared to the same quarter in 2019.
In addition, the Employee Retention Credit is also available for the 1st and 2nd quarter of 2021. The same rules apply as above, except the gross receipts only need to have declined by 20% when comparing to the same quarter in 2019. The credit also increased for 2021 and can be up to $7,000 per employee per quarter.
If you are unsure whether you qualify for this credit, or need assistance with how to claim the credit, please contact our office.