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.
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