Other Stimulus Overview
Employee Retention Tax Credit (ERTC) – 2020
• Allows ERTC for 2020 to be taken for businesses that took a PPP loan
• Business must either:
o Had operations fully or partially suspended due to COVID-19 OR
o Had a 50% or more decline in gross receipts (compared to same quarter in 2019)
• No “Double Dipping” – only wages NOT covered by forgiven PPP loan or another tax credit program
• Per employee wage limit of $10,000 (including certain health plan costs)
• Credit amount on qualified wages of 50%
• Maximum credit amount per employee of $5,000 for the year
Employee Retention Tax Credit (ERTC) – 2021
• Extends and expands the ERTC: January 1, 2021 through June 30, 2021
• Business must either
o Had operations fully or partially suspended due to COVID-19 OR
o Had a 20% or more decline in gross receipts (compared to same quarter in 2019)
▪ can choose to use prior quarter gross receipts when compared to 2019 rather than the same quarter
• No “Double Dipping” – only wages NOT covered by forgiven PPP loan or another tax credit program
• Per employee wage limit of $10,000 (including certain health plan costs) PER QUARTER
• Credit amount on qualified wages of 70%
o Maximum credit amount per employee of $7,000 per quarter (Total of $14,000 per employee)
EIDL Grants: $20 billion
• For businesses in low-income communities
• Businesses must employee 300 or fewer
• Businesses must have had an economic loss greater than 30%
Shuttered Venue Operators: $15 billion
• New grant program, not in operation yet, administered by the SBA
• Initial grant up to $10,000,000, supplemental grant 50% of initial grant
• Must be used on payroll costs, rent, utilities, and personal protective equipment
• Grant + PPP = NOT OK, one or the other
FFCRA 2021
• The Act does not extend the FFCRA’s mandate to provide paid sick leave or paid family and medical leave beyond December 31, 2020.
• The Act extends the paid sick and family leave credits against employment taxes for three additional months until March 31, 2021