Businesses and non-profit entities who expect a 20% or greater decline in gross receipts in Q1 and/or Q2 of 2021 as compared to the same quarter of 2019, may qualify for credits of up to $14k per employee in 2021. The maximum credits are available for employees whose wages and qualified health care expenses are more than $10k each quarter. These wages can now include bonus compensation.
The Consolidated Appropriations Act stimulus package signed on December 29, 2020 includes an expansion of the Employee Retention Tax Credit. There may be credits available to your business depending on a number of factors.
If your organization:
- Received PPP funds in 2020 and had fewer than 100 FTEs?
- Paid people in 2020 who were NOT working while receiving pay?
- Has fewer than 500 FTEs and expects revenue to be down 20% or more in Q1 2021 as compared to Q1 2019 OR as compared to Q4 2020?
If you answered yes to one or more of the above, we can help you determine if you should pursue credits through the Employee Retention Credit (ERC) program.
We Can Help
Elliott Davis helps customers work through the nuances of their circumstances to determine eligibility for the credits, and we are offering a complimentary Discovery Phase consultation. Simply complete a short survey and we will reach out to discuss your options around the credit. Explore your ERC applicability, and learn how you may have 2020 or 2021 credits available to you today.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change as a result of rapidly evolving legislative developments and government guidance.