I’ve got some good news for you, but first let’s start with a little history.
When Congress passed the CARES Act back in March of 2020, they gave business owners such as you, two choices.
- You could take advantage of the Paycheck Protection Plan (PPP) and get a fully reimbursed loan designed to help you stay afloat. (Free money!)
Or
- You could get an “employee retention credit,” fully refundable against your business’s payroll tax liabilities. (A nice increase of your cash benefits!)
The problem under the old relief law
was that you could choose only one option, not both.
The good news? I’m happy to report that thanks to the new COVID-19 relief law, enacted December 27, 2020, if you originally picked the PPP, you can now get both the PPP loan and the employee tax credit!
Want to take advantage of the new law and put a lot more money in your pocket?
New COVID-19 Relief Law
Turbocharges Employee Retention Credit
Three ways our fact-filled article can help you:
- You’ll learn how the employee retention credit works. If you’re eligible, the CARE Act gives you a refundable tax credit against the employee portion of the Social Security tax. How big is the tax credit? It can equal up to $5,000 per employee on the wages you paid to your employees on or after March 13, 2020 through December 31, 2020. All will be explained when you read the full article.
- We’ll tell you if you qualify for the employee tax credit.
You’re eligible if:
• A government order fully or partially suspended your operations during a calendar quarter due to COVID-19. (You have a high likelihood of getting your employee retention credit if you suffered this problem.)
• Your gross receipts, for a calendar quarter, are less than 50% of gross receipts from the same quarter in tax year 2019. In this case, your credit ends in the quarter when gross receipts exceeded 80% of gross receipts from the same quarter in the prior year.
We’ll cover this material in detail when you read the full article.
- We’ll explain tax-year 2021 changes in the law. For the two quarters in 2021, Congress increased the possible credit amount up $14,000 per employee and made it easier than ever for employers to claim the credit. Please note that the law changed in four important ways. We’ll tell you what the changes were when you