Does your business qualify for the employee retention credit?
Businesses that received a Paycheck Protection Program (PPP) loan are eligible for the employee retention credit for those wages not reimbursed through the PPP loan. The credit is equal to 50% of an employee’s wages paid after March 12, 2020 and before January 1, 2021. The maximum credit was $10,000 per employee per year. The credit increased to 70% of wages paid between January 1, 2021 and June 30, 2021. The maximum credit is $10,000 per employee per quarter.
To qualify for the credit, your business must have been fully or partially suspended by government order related to COVID-19, or a business whose gross receipts were below 50% of the comparable quarter in 2019. For 2021, the gross receipts only needed to decline by 20% rather than the 50%. The business must employ less than 100 employees during 2020 but less than 500 employees in 2021.
Questions? Please contact us at 401-831-0200.