Can employers claim PPP Loans and Employee Retention Credits?
Update as of March 11th, 2021 - With the passing of the American Rescue Plan, the Employee Retention Tax Credit (ERTC) is now available through the rest of the 2021 calendar year, meaning that your company could qualify for up to $33,000 per employee across 2020 and 2021.
Update as of December 29th, 2020 - With the passing of the Consolidated Appropriations Act, employers can qualify for the ERTC even if they took the PPP loans. The CAA also expanded the ERTC into the first two quarters of 2021, and reducing the profit loss to at least 20% and increasing the credit amount to up to $7,000 per employee quarter in 2021. This means businesses could qualify for up to $19,000 per employee across 2020 and 2021.
Short answer - NO. Any employer that claims a PPP Loan will not be eligible for the ERTC.
If you'd like to find out more about COVID-19 and how it affects businesses in Michigan and beyond, check out the following Workforce Payhub COVID-19 resources, listed in chronological order:
- COVID-19 Resources for Michigan Businesses | Written in April of 2020 and updated in May, this was written to be the ultimate COVID-19 Resources guide for Michigan Businesses).
- COVID-19 Update From Workforce PayHub |Written in April of 2020 and updated in May, this COVID-19 Update lists the steps that we at Workforce Payhub have taken to ensure business continuity despite the pandemic, as well as a few different ways we can continue to assist you with managing your payroll and your employees).
- COVID-19 Update | Workforce Vlog #16 | Filmed in April of 2020, this Vlog features Eric and Chilah discussing Workforce PayHub's response to the COVID-19 crisis, the Families First Coronavirus Response Act, and then the CARES Act that had just been signed by President Trump.
- COVID-19 | Legislative Update | In this Vlog from April of 2020, Eric and Chilah discuss the finer points of FFCRA and the CARES Act, and how you and your business can best leverage these legislative items to your advantage.
- Easy Rehiring | Workforce Vlog #18 | In this Vlog, Eric and Chilah discuss how many states are opening up their local economies again and businesses are ready to bring back laid-off, furloughed, or new employees. They also delve into how you and your business can take advantage of these trends.
- Smart Clock Options | Workforce Vlog #19 | In this Vlog, Eric and Chilah discuss time & attendance options for the "new normal", including touchless biometric clocks, badge cards, mobile apps, and more!
- Workforce Webinar: ePoster Update | Did the COVID-19 pandemic force your workforce to go remote? We have a solution for you to provide the required labor law posting requirements regardless of which state or location they are working from!
- Top 10 COVID-19 Mistakes Employers Make | If you're an employer who wants to learn what NOT to do during the COVID pandemic, check out our Top 10 COVID-19 Mistakes Employers Make Blog Post or our Top 10 COVID-19 Mistakes Employers Make Webinar.
