Employee Retention Tax Credits (ERTC)
While previously businesses had to either choose between taking a PPP loan or the ERTC, now they can choose both.
There are also some other changes to the ERTC:
- The ERTC is extended and expanded through July 1, 2021.
- The bill increases the refundable payroll tax credit from a maximum of $5,000 to $14,000 by changing the calculation from 50% of wages paid up to $10,000 to 70% of wages paid up to $10,000 for any quarter.
- The increase to $7,000 in credits per employee for each of the first two quarters of 2021 is available even to those entities that previously claimed a credit of $5,000 per employee in 2020.
For more information, please visit theIRS Employee Retention Credit under the CARES Act website.