Employee Retention Tax Credit – ERTC

By Michael Mazza, CPA, MST, Shareholder

With the recent tax relief and appropriations bill, an update was made to the Employee Retention Tax Credit which made it available to more businesses.  The credit can be claimed for either 2020 and/or 2021.  Originally the credit was not available to businesses that received money under the Payroll Protection Program (PPP) however, with the recent changes, a business can now be eligible for both. 

Below are the highlights of qualifying for the credit. If any of the below apply to you, please contact Detweiler, Hershey & Associates to discuss.

  • For either 2020 and/or the first and/or second quarter of 2021 your business was either fully or partially suspended by a governmental order due to COVID-19.
  • For calendar year 2020, if the businesses gross receipts in any quarter in 2020 were less than 50% (50% reduction) of the gross receipts in the same quarter of 2019.
  • For the first and/or second quarter of 2021, if the businesses gross receipts in either quarter are less than 80% (20% reduction) of the gross receipts in the same quarter in 2019.
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