The New Employee Retention Tax Credit Changes are Great News for Small Businesses.
The Employee Retention Tax Credit (ERTC) can greatly help businesses that suffered revenue reductions from COVID-19.
The ERTC was originally included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but it was not widely used because initially, businesses could only take advantage of either the Paycheck Protection Program (PPP) or the ERTC. But Congress revised this provision in December 2020, meaning many more companies may now qualify to receive PPP loans and use the ERTC.
What are the Changes to the ERTC?
In this Member Question of the Day: "What Are the Changes To the Employee Retention Tax Credit", I'm joined by Barnes and Thornburg Partner, Randy Kaltenmark to learn more about the changes. Many businesses will, by now, have familiarity with the ERTC, and this interview focuses on the changes in benefits and eligibility to come out of Washington DC.
Employee Retention Tax Credit Questions Answered In This Video:
- What changed?
- What is the eligibility period?
- What is the amount of the credit?
- Is there a maximum amount?
- What are the eligibility requirements for the credit?
- Is eligibility affected by whether employees are working or not?
- Do employers qualify for the credit if they’ve received PPP loans?
- May employers get an advance payment of the credit?
Updated with changes issued in 2021.
What About Changes to PPP?
Information on the new round of Paycheck Protection Program (PPP) funds can be found in our Smart Restart Toolkit.
- Video of SBAM President, Brian Calley
- Links to U.S. Chamber Resources