Employee Retention Credit Alert!
- Yechiel Roth CPA, CFP, PFS
- Mar 25, 2021
- 2 min read
As you may know, there have been three major stimulus bills, included and subsequently enhanced in these bills, is the Employee Retention Credit.
The Employee Retention Credit is now capped at 5K per employee for 2020, & 7K per employee per quarter for 2021. The total potential benefit is 33K per employee.
There are two factors that can create eligibility, a drop in revenue compared to 2019 or a complete or partial suspension of operation.
For 2020 the drop needs to be more than 50% for one quarter, and for 2021, the drop needs to be at least 20% for the current or prior quarter.
Some businesses do not have a drop nor a full suspension of operation and may think they are not eligible. But the definition of partial suspension of operations is very broad, see the IRS notice below. One example (page 36) the notice provides, is a hospital that needs to cancel elective surgeries is considered to have a partial suspension of operations. This is regardless of the hospital’s actual workload or revenue.
If you believe you may be eligible for the ERTC, you may want to evaluate this before you file the 1st quarter payroll forms, while you can always amend the return within 3 years, it is usually smoother to file correctly the first time. Also, if you received PPP this quarter, you would want to properly allocate the payroll, because you can’t claim the same payroll for PPP and ERTC.
If you conclude that you are eligible and there is no conflict with the PPP, then you can notify your payroll service provider to claim the credit, if this still needs to be analyzed, then we would recommend telling the payroll company to wait on filing the forms until later in the month.
A Data Analytics Course in Ahmedabad can be a practical option for people who want to understand how data is collected, cleaned, and interpreted for decision-making. Such courses usually cover basic concepts like data visualization, statistical analysis, and common tools used in the industry. For students and working professionals, learning data analytics can help build analytical thinking skills that are useful across many fields.
Enrolling in a Data Science Course in Kolkata can be a useful step for anyone looking to understand key concepts in data analysis, machine learning, and statistics. These courses typically cover a range of topics that help build a strong foundation in data-driven problem solving, which is becoming increasingly important in various fields.
When researching web development learning paths, the term Full Stack Developer Course in Trivandrum often appears. These courses usually introduce both front-end and back-end concepts, helping learners understand how complete web applications are structured.
An AI Course in Ahmedabad can be a practical option for people who want to understand the basics of artificial intelligence and how it is applied in real-world scenarios. Such courses often cover foundational topics like machine learning, data analysis, and automation, making them suitable for students and working professionals alike.
A Digital Marketing Course in Delhi is often considered by people who want to understand basic online marketing areas such as SEO, social media, and digital advertising. It can help learners become familiar with how digital platforms are commonly used today. The learning outcome usually depends on the syllabus, teaching style, and individual goals.