Who Is Eligible for the Credit for Employee Retention
At first, the Employee Retention Credit (ERC) was kept a little secret. The ERC, which was first included in the CARES Act, was restricted to organizations that had not received Paycheck Protection Program (PPP) loans in 2020. As of December 2020, thanks to the Consolidated Appropriations Act, people who had previously received a PPP loan were no longer disqualified from receiving the ERC (and expanded the credit in 2021). Many companies failed to notice this.
Many businesses are starting to investigate whether they can retroactively claim the ERC now that 2023 has passed and there is no PPP loan program in place. Additionally, a company will probably call businesses that haven’t done their research to inform them that they are eligible for up to $26,000 in credits per employee.
This is true if the business is eligible for the ERC during all applicable timeframes and the employee...