Employee Retention Tax Credit Extended to December 31
By
aholaadmin
A next key payroll change from the American Rescue Plan involved the CARES Act Employee Retention Credits. The important change to note here is that the Employee Retention Credits have been extended through December 31, 2021. Previously these credits were set to expire on June 30, 2021. For the most part, The rules for eligibility and calculation of the Employee Retention Credits remains the same as established by the Consolidated Appropriations Act of 2021 (for example the credit limit is still $7,000 per employee per quarter in 2021.)
However, the American Rescue Plan provides new eligibility provisions for (1) recovery startup businesses (employers who began business after February 15, 2020, have gross annual receipts of up to $1 million and are otherwise ineligible under the eligibility test) and (2) severely financially distressed employers (companies with gross receipt reductions of more than 90% as compared to the same quarter in 2019).
According to a Bloomberg News Update, “the ARPA extended the Employee Retention Tax Credit so it can be claimed on qualified wages that employers pay to employees in the third an fourth quarters of 2021,whereas under the 2021 Consolidated Appropriations Act, the credit no longer would have been available for amounts paid after the second quarter of 2021.”
Interested in seeing if you qualify for the Employee Retention Tax Credit? Need help with calculations and filing? We can assist you. Contact us today at COVIDSupport@ahola.com for next steps and instructions on how to get the process started.
Reply a Comment