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Employee Retention Credit to PPP Recipients – worth up to $19,000 Per Employee for Your Business!
The new stimulus bill, that is awaiting the President’s signature, includes a 2021 CARES Employee Retention Credit (ERC) extension and new ERC tax incentives for Paycheck Protection Plan (PPP) recipients. This is what we’ve been waiting for!
After many months of banter and negotiations, Democrat and Republican leaders agreed on a $900B coronavirus relief deal that includes significant enhancements to the CARES Act Employee Retention Credit (ERC) and some technical corrections to the CARES Act in general. When this pandemic started and the CARES Act tax incentives were created, most businesses that qualified for both the ERC and a PPP Loan opted for the PPP Loan. One of the most important modifications to highlight is now businesses that received PPP loans through the SBA will now be eligible to also receive the ERC.
To prevent employers from “double-dipping”, legislation included a clause that prohibited an eligible employer who took the PPP loan from claiming the ERC. With the new legislation on the President’s desk, this is now not the case. This change is retroactive to March 27, 2020 — however, there is one caveat to receiving both the PPP and ERC: employers may only utilize the ERC towards wages that are not paid for with forgiven PPP proceeds.
Some other important modifications to the ERC include:
- Extension of ERC for 6 months through June 30, 2021!
- An enhancement to the credit amount and expanded qualifiers.
- Increased credit rate from 50% to 70% of qualified wages for 2021 and increases the limit on per-employee creditable wages from $10,000 for the year to $10,000 for each quarter.
- Increased benefits in 2021 for full wages for companies up to 500 employees.
What our team at Synergi Partners is finding is that many businesses are not investigating the ERC as “they think” they are not eligible. Let me help you understand who qualifies and who does not. Think of each of the points below as a small holiday gift to you, and know that if you answer YES to any of them – your business may still quality for the ERC:
- We are an essential business.
- We did not shutdown.
- My business is still profitable through this pandemic.
- We are a non-profit.
- We took the PPP.
As so many are gearing down to enjoy this end of year holiday season, my team and I are gearing up to help you as we have developed a proprietary methodology to maximize credits through our consistent, proven, and defendable process. Let us help you!
Larry Feinstein
President – CARES Act, Synergi Partners
(678) 777-7001
lfeinstein@synergipartners.com