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.
Thanks for sharing this update, the Employee Retention Credit situation is something a lot of business owners still need clear guidance on. It’s helpful to see reminders like this that highlight both the opportunities and the risks involved, especially since the rules and eligibility details can be quite complex. Even outside of business topics, it’s a good reminder that preparation and consistency matter in everything we do, whether it’s work, planning ahead, or even small everyday choices like enjoying a Chicken Supreme Burger after a long day 😄
Appreciate the insight!
Really appreciate this update — the Employee Retention Credit situation is definitely something a lot of business owners still need clarity on. It’s good to see reminders like this that highlight both the opportunities and the risks involved, especially since many people are still sorting through eligibility and documentation concerns. Articles like this help bring attention to how important it is to stay cautious and well-informed instead of rushing into claims without proper guidance. Clear, practical insights like these can really save businesses from future issues. Also, no matter the industry, being prepared and having the right protective gear matters in all kinds of work environments, even something like a Fire Resistant Welding Jacket when dealing with hands-on or high-heat…
Thanks for sharing this update, very helpful and timely information about the Employee Retention Credit. A lot of businesses still seem confused about eligibility and the risks involved, so breaking it down like this really adds clarity. It’s definitely something every small business owner should double-check with proper documentation instead of relying on quick claims or aggressive promoters. Staying informed like this can really save a lot of trouble later. Also, managing business compliance properly goes hand in hand with having the right tools and gear for productivity, like High Performance Gloves when working in hands-on environments. Appreciate the insights!
This was a very informative and helpful article about the Employee Retention Credit. The way the blog explains important updates and alerts makes it much easier for business owners to understand the risks and opportunities involved. Clear financial guidance like this is extremely valuable, especially for small businesses trying to stay compliant and make smart decisions. A professional online presence supported by CMS Website Development Services can also help accounting firms and advisory businesses build more trust and reach a wider audience.
Here are a few cleaner and more engaging ways to write your YouTube channel line:
Simple version:👉 My YouTube channel: RahulShallu — Please like and subscribe!
Catchy version:👉 Welcome to RahulShallu! Don’t forget to like 👍 and subscribe 🔔
https://youtube.com/shorts/v7MSjkgYL-A?si=q_LEkX-UoeYJK8Hu