Employee Retention Credit for 2020 & 2021 Revised and Expanded

The employee retention credit (ERC) is still available until December 31, 2021. This is an extremely beneficial tax credit that definitely should be considered by any employer.

The credit was available in 2020 but until the law was changed on 12/27/20, if you had received a PPP loan and expected it to be forgiven then you were not eligible for the ERC. If you are eligible for the credit due to this law change you will need to file amended Form 941s for each quarter that you qualified in 2020 as well as amend income tax returns to reflect the non-deductibility of expenses covered by the credit.

It is important to note that a number of the other requirements that needed to be met to get the credit in 2020 have been relaxed in 2021.

Contact me if you need assistance determining if you qualify for the credit now and in 2020, the amount of the credit you are eligible for, and when you will receive it.