Gorfine, Schiller & Gardyn’s Tax Director, Aaron Bloom, discusses Employee Retention Credit opportunities for companies that were PPP loan recipients.
The Employee Retention Credit (ERC) was implemented to help aid small businesses with cash flow, depending on eligible salaries and eligible employers.
Originally in early 2020, when the ERC was first offered, companies could not receive a PPP loan and qualify for ERC in the same time period. For most companies, the numbers for the PPP program were much more significant, so the ERC was disregarded.
Towards the end of 2020 and beginning of 2021, PPP Round 2 began, and this allowed companies with qualifying wages and expenses that were not covered by PPP funding to qualify for the ERC at the same time PPP funds were received.
The change in eligibility has broadened the scope of companies that can qualify for the credit, and many companies have the ability to take advantage of considerable savings opportunities by qualifying for both the ERC and PPP programs at the same time.
Gorfine, Schiller & Gardyn’s latest podcast covers:
- Definition of an “eligible employer”
- Changes in the amount of credit for 2020 and 2021
- Steps companies should take to qualify for the ERC
Listen today to learn the relief options available to your company with the updated ERC. For more information on how to maximize your PPP forgiveness and ERC savings, contact us here.Categories: Tax Planning, COVID-19 Resources, Tax, Small Business