PPP Recipients Now Eligible for the Employee Retention Credit!

The CARES Act signed into law in March of 2020, includes a refundable payroll tax credit called the Employee Retention Credit (ERC), under which tax-exempt organizations could receive up to $5,000 per employee for calendar year 2020 if certain eligibility requirements are met. However, under the CARES Act, organizations that received a Payroll Protection Program loan (PPP) were not eligible to also receive the ERC.

On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 (Act), which modified many aspects of the ERC and expanded it into the first two quarters of 2021. It also expanded eligibility to those organizations that had received a PPP loan, making it an excellent opportunity for many organizations to receive additional cash.

Please visit https://www.schneiderdowns.com/our-thoughts-on/stimulus-package-enhances-employee-retention-credit to learn more about the Employee Retention Credit and the changes that have been made under the Act. For more information, feel free to reach out to your Schneider Downs contact.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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