According to the IRS, the Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employers after March 12, 2020.  For each employee, up to $10,000 can be counted to the amount of $5,000. 

Employers, including tax-exempt organizations, are eligible for the credit if they operated during 2020 and experienced either:

1. the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or
2. a significant decline in gross receipts. 

Due to closures and regulations on dining and capacity, golf carts, events, etc,  it is believed that a majority of golf facilities fall into the above categories.

A significant decline in gross receipts begins:

• on the first day of the first calendar quarter of 2020
• for which an employer’s gross receipts are less than 50% of its gross receipts
• for the same calendar quarter in 2019.

The significant decline in gross receipts ends:

• on the first day of the first calendar quarter following the calendar quarter
• in which gross receipts are more than 80% of its gross receipts
• for the same calendar quarter in 2019.

Please note that if an employer receives a Small Business Interruption Loan under the Paycheck Protection Program, authorized under the CARES Act, then the employer is not eligible for the Employee Retention Credit.

** You might be eligible to receive credit for losses in Q1 & Q2 of 2021 if you received PPP in 2020**

2021 Qualifying ERC Details (Awaiting on FULL IRS Guideline on the changes summarized below)

• Extended through June 30, 2021
• 500 of fewer average monthly full-time employees
• Gross receipts 80 or less compared to same quarter 2019
• Credit increased to 70% (vs 50% in 2020)
• Max credit $14,000 / employee

Please have your employer contact their payroll provider or accountant to ensure your facility is up to date and can take advantage of the Employee Retention Credit.  For additional support, reach out for your PGA Career Consultant

For more information, please visit theIRS Employee Retention Credit under the CARES Act website.