Here are some information to help you and your employees weather this pandemic. (Information presented here is merely a summary, and is not intended as advice.)
The EMPLOYER RETENTION CREDIT is available for employers whose operations were fully or partially shutdown because of governmental orders due to COVID-19, or experienced significant declines in gross receipts. This credit has been changed multiple times; perhaps the biggest retroactive change is that employers who obtained PPP loans ARE now permitted to claim the credit by filing Form 941-X.
Employers may qualify for this credit for qualifying wages paid between March 12, 2020 and September 30, 2021. Qualifying wages includes qualified health plan expenses, but does not include wages allocable to qualified sick leave or family leave wages; and for employers averaging more than 100 full-time employees during 2019, it does not include wages paid to employees who actually worked! Making things even more confusing, the definition of “significant decline” is different between 2020 and 2021, the credit rate is different, and the qualifying wages are capped by employee for the year in 2020 while capped by quarter in 2021.
If you qualify for this credit because you were fully or partially shutdown by governmental orders or experienced a significant decline in gross receipts, there is still time to file a claim.
(Last updated January 19, 2022)