An Employee Retention Credit (ERC), part of the new CARES Act, is big news for smaller employers. Here’s what you need to know about it:
- The program has been around since last March, but it didn’t become a viable option for senior living providers until December.
- The ERC is a refundable credit against certain employment taxes. It was initially established to address organizations that have been materially impacted by COVID-19.
- The CARES Act makes PPP loan recipients, in addition to organizations materially impacted by COVID-19, eligible for the credit.
- To qualify, businesses need to have a decline in gross receipts of 20% in 2021. They also need to have been impacted by government mandates, such as office closures or partial suspension of operations.
