If you weren’t able to get a PPP Loan… this one is you.
The Internal Revenue Service is reminding employers who have been impacted by the Coronavirus pandemic that three new credits are available for them.
The first of these, the Employee Retention Credit, is intended to encourage businesses to keep employees on the payroll. The ERC is a refundable tax credit of 50% up to $10,000 in wages paid by an eligible employer whose business has been financially affected by COVID-19.
The credits available to all employers, regardless of size, and includes tax-exempt organizations. The IRS says there are only two exceptions to this credit: State and local governments and their instrumentalities, and small businesses who take small-business loans (This includes a PPP loan.) But if you didn’t, check this out. Every bit helps!
There are only two qualifications and employers have to meet one or the other:
- The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
- The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.
Let us know if you’d like help getting one of these credits. (That’s what we do for our clients, we make the effort to get information to them, the kind of stuff that makes a difference, that helps run the company, in bad times & in good.)