In light of recent changes resulting from the Consolidated Appropriations Act of 2021 signed into law December 28th, 2020, PPP Loan recipients in 2020 that may not have been eligible to take advantage of the Employee Retention Credit, may now qualify for the credit for 2020 and 2021.
The Employer Retention Credit was enacted to help businesses and certain non-profits offset the cost of retaining employees during the pandemic. The credit applies to both the 2020 and 2021 tax years, and may provide a way to offset payroll tax liabilities during the ongoing pandemic.
Eligibility to take the employee retention credit is in part based on your number of full-time employees, and whether or not your business experienced a significant decline in revenue, or operations were fully or partially suspended due to a direct order from a Federal, State, or Local Government organization.
The rules are complex, but the benefits can be substantial. If you think you might be eligible or want to explore the possibility further, please reach out to us and we would be happy to help you look into the potential options available.