Article Date:
November 2023

Word Count:



The ERC Story: From Double Benefits to IRS Warnings

The Employee Retention Credit (ERC) had a humble beginning inside the CARES Act in March 2020.1


At inception, you had to make a choice: claim the ERC of up to $5,000 per eligible employee, or take out a forgivable loan under the Paycheck Protection Program (PPP). You could not take both—but that changed in December.


December 27, 2020


Goodbye ERC-or-PPP choice. Hello double benefit. What happened? Lawmakers enacted the Consolidated Appropriations Act, 2021 (CAA) on December 27, 2020.



The CAA retroactively allowed the 2020 ERC for those who opted for the PPP, thereby enabling both benefits for 2020, but not on the same wages.2


Next, the CAA expanded the ERC to the first two quarters of 2021 and increased the possible tax credit to $7,000 per eligible employee ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee