IRS Issues Guidance on Employee Retention Credit, Including PPP Eligibility Rules
March 3, 2021
On March 1, 2021, the IRS published new guidance for employers who will be claiming the Employee Retention Credit (ERC) for 2020 calendar quarters.
The notice provides much needed clarity on the retroactive changes under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, including details on how employers who have already received PPP loan forgiveness can claim the employee retention credit for 2020.
The new guidance, which is similar to the previously issued IRS FAQs, also addresses a few outstanding questions about eligibility, qualified wages and the suspension tests. General answers to those questions before the issuance of this new guidance can be found in this Smith and Howard article.
The IRS has also promised forthcoming guidance on the 2021 expanded employee retention credits.
For more information or help, please contact your Smith and Howard tax advisor or complete our contact form.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
Subscribe to our newsletters to get inside access to timely news, trends and insights from Smith + Howard.