- The ERTC was originally established under the CARES Act t encourage businesses to keep employees on payroll during the pandemic.
- Employers can now retroactively apply for credits in 2020, even if they have received a PPP loan from the Small Business Administration.
- Employers can receive a CREDIT ADVANCE from the US Treasury.
- ERTC was extended to December 31, 2021 as part of the American Rescue Plan Act that was signed on March 11, 2021.
- The refundable tax credit is now 70% of up to $10,000 in wages per quarter for the periods beginning January 1, 2021 and ending December 31, 2021.
A company with 20 employees on payroll may be eligible for up to $100,000 of refundable credits in 2020, and $140,000 of refundable credits for each qualifying quarter in 2021 ($560,000 potential total for 2021).