The recently-signed Consolidated Appropriations Act of 2021 made significant changes to the rules surrounding the CARES Act Employee Retention Credit (originally a refundable payroll credit for 50% of “qualified wages” paid or incurred by eligible employers to employees after March 12, 2020, and before January 1, 2021) including increasing the percentage to 70% and extending the period to June 30, 2021.
Most importantly, however, the Act states that PPP Loan Borrowers may now qualify for ERCs, provided wages were not paid with funds from the PPP Loan. This distinction is critical for calculating PPP Loan Forgiveness.
If you are interested in ERC calculation assistance, please reach out to your Prager Metis advisor or contact our Crisis Management team here.
