Has the Employee Retention Credit Been Extended – Live General News
Has the Employee Retention Credit Been Extended – Latest News Today
Has the employee retention credit been extended?
The employee retention credit has not been extended. However, the credit may be available to eligible employers who retain their employees and pay them wages during the COVID-19 pandemic. For more information, please see the Frequently Asked Questions about the Employee Retention Credit on IRS.gov.
ERTC extended date
Eligible employers can claim the credit for retaining employees and paying qualifying wages from March 13, 2020 through December 31, 2020.
To be eligible, an employer must:
– Have been carrying on a trade or business during calendar year 2020
– Have been fully or partially suspended due to orders from an appropriate governmental authority limiting commerce, travel or group meetings due to COVID-19
– Have experienced a significant decline in gross receipts during the calendar quarter in 2020 when compared to the same calendar quarter in 2019.
For an employer to qualify for the credit, they must pay qualifying wages to their employees. Qualifying wages are those that are paid for work performed during the period of either:
– The suspension of operations due to a governmental order OR
– The decline in gross receipts.
Wages paid pursuant to a leave of absence do not qualify for the credit.
The credit is equal to 50% of the qualified wages (including allocable qualified health plan expenses) paid by an eligible employer to its employees after March 12, 2020 and before January 1, 2021.