On Dec. 20, 2020, the House and Senate passed H.R. 133, the Consolidated Appropriations Act of 2021 (“CAA”), which includes a significant expansion of the Employee Retention Tax Credit (“ERTC”) through June 30.
The ERTC was first enacted on March 27, 2020, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which provided eligible employers with a refundable tax credit for up to $5,000 per employee, for qualified wages paid from March 13, 2020, through the end of the year.
Brownstein previously released an ERTC Q&A Guide summarizing the CARES Act provisions and IRS and Department of the Treasury guidance. This document is intended to provide an update of the CAA’s changes to the ERTC and to provide clarity on the ERTC where it has otherwise been lacking (e.g., coordination of ERTC and Paycheck Protection Program loans).
Click here for the updated document.