Huge New Stimulus Credits in the Consolidated Appropriations Act of 2021 Available to Employers Impacted by the Pandemic

Last year, the CARES Act granted businesses and nonprofits a payroll tax credit, but due to its several restrictions most clients were unable to qualify. The newly passed Taxpayer Certainty and Disaster Tax Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021, drops many of the restrictions. In so doing, the new law frees up potentially millions in credits for qualified employers due to the expanded Employee Retention Tax Credit (ERTC), now applicable through the first two quarters of 2021. The major changes are:

  • increase the credit percentage from 50% to 70% of qualified wages.
  • increase the creditable limit on per employee wages from $10,000 for the year to $10,000 for each quarter.
  • reduce the required year-over-year gross receipts decline from 50% to 20%.
  • increase from 100 to 500 in the number of employees counted when determining which qualified wage base applies.

Contact our office for a complimentary assessment on whether your business qualifies. Many of our clients, both large and small, are anticipating receiving from thousands to hundreds of thousands of dollars and up in dollar for dollar payroll tax credits.

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