When Congress passed the CARES Act in March 2020, most businesses took advantage of the Paycheck Protection Program (PPP) loan to help keep them afloat.
Congress also authorized a second option to help employers—an employee retention credit fully refundable against the business’s payroll tax liabilities.
Since a business could do only one or the other, many businesses passed on the employee retention credit.
But now, retroactive to enactment of the CARES Act in March 2020, thanks to the new COVID-19 relief law, an employer who has or had the PPP in hand can do both the PPP loan and the employee retention credit.
Looking forward to 2021, Congress made the employee retention credit easier to claim and increased the dollar amount of your cash benefits.
So spend a few minutes now and read the article to learn how you may have thousands of dollars in unclaimed prior quarter tax credits waiting for you to claim them. Think of this as a holiday gift. The new COVID-19 relief law was enacted on December 27, 2020.
And this holiday cash gift is only part of the story. In 2021, you will find that the new law multiplies your possible employee retention tax credits by 2.8. ... Log in to view full article.