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