PPP Loans are not the only relief the federal government is offering to businesses adversely affected by the pandemic. Under the CARES Act and Coronavirus Response and Relief Supplemental Appropriations Act, employers may qualify for Employee Retention Credits (“ERC”) of up to $19,000 per employee. This refundable tax credit is available to employers who:
- Had operations at least partially suspended during any calendar quarter in 2020 due to pandemic-related government orders;
- Experienced a year-over-year decrease in gross revenue of at least 50% for Q2, Q3, or Q4 of 2020; or
- Experienced a year-over-year decrease in gross revenue of at least 20% for Q1 or Q2 of 2021.
Contrary to what many people believe, businesses may still qualify for ERC even if they received PPP loans and were never completely shut down by governmental orders.
If your business was negatively affected by the COVID-19 pandemic and paid wages between March 12, 2020 and June 30, 2021, contact Marcus & Boxerman at firm@marcusboxerman.com.