The year-end pandemic relief bill expanded the employee retention tax credit beginning January 1, 2021. The prior credit was limited to $5,000 per employee. The expanded credit can apply to up to $14,000 per employee.
Under the previous rules, an employer had to demonstrate a decline in gross receipts of 50% in a quarter. The new requirement is more than 20% in a quarter.
The limit on the number of employees a company can have and still qualify has been raised from a maximum of 100 to a maximum of 500.
Employers can now receive both a PPP and an Employee Retention Tax Credit, just not to cover the same expenses.
For more information, CLICK HERE see the U.S. Chamber Guide to Small Business COVID-19 Emergency Loans.