On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted and with it, the Employee Retention Credit. At the time, anyone who received a Paycheck Protection Program (PPP) loan was not eligible to receive the Employee Retention Credit. However, when the Consolidated Appropriations Act (CAA) 2021 was passed, the rules were changed to allow organizations that have a PPP loan to now take the credit.
Below you will find some video resources to gain a high-level understanding of the Employee Retention Credit. If you are in need of our services to help with eligibility or calculating your credit, please reach out to your BSSF contact.
Employee Retention Credit Spreadsheet
BSSF has provided a video that gives a very high-level overview of the Employee Retention Credit, as well as the accompanying spreadsheet. In the spreadsheet, you will several tabs:
- Overview: this provides an overview of the timeline of the Employee Retention Credit and how it interplays with the PPP loan and forgiveness period.
- Week Example: this is an example of the calculation of the Employee Retention Credit with a comparison of using 100% versus 60% payroll for your PPP loan forgiveness.
- Revenue Decrease Calc: an organization can use this sheet to calculate drop in revenue.
- Compare Terms: this sheet just shows some high-level comparison of what the different requirements are for the PPP loan and the Employee Retention Credit.
- We recommend watching the video while reviewing the spreadsheet.
|Click Here to Download the Employee Retention Credit Spreadsheet|
Employee Retention Credit Overview
This is an overview of the Employee Retention Credit, which was originally shown as part of the webinar BSSF did on the Impact of the Stimulus Relief Bill from Consolidated Appropriations Act 2021. Topics discussed in this video include eligibility and how to claim the credit.
|Click Here to Download the PowerPoint Slides|
Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.