A significant number of organizations across the nation are likely eligible for the Employee Retention Tax Credit (ERTC), but since few have claimed it, the tax break may expire early.
If passed, the proposed $1 trillion Infrastructure Investment and Jobs Act will end the pandemic-era tax break three months early, on Sept. 30 rather than the current date of Dec. 31, 2021. Eligible organizations would still be allowed to claim the ERTC for 2020 and the first quarter through the third quarter of 2021, but there would be no credit for the fourth quarter.
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Topics:
NFP,
COVID19,
COVID-19,
CARES Act,
Paycheck Protection Program,
PPP,
PPP Loan,
SBA,
Employee Retention Credit,
Employee Retention Tax Credit,
ERTC
With the modifications made to the incentive, organizations continue to evaluate how to maximize the Employee Retention Tax Credit (ERTC). The ERTC is a special incentive created within the 2020 Coronavirus Aid, Relief, and Economic Securities (CARES) Act that encourages employers to retain their workforce during periods of economic disruption caused by the coronavirus pandemic. It provides immediate reductions to payroll taxes and cash refunds for credits in excess of payroll taxes, for both commercial and not-for-profit employers. A business must have been subject to government shutdown orders or experienced a significant decline in gross receipts to qualify.
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Topics:
AICPA,
IRS,
NFP,
COVID19,
COVID-19,
CARES Act,
Paycheck Protection Program,
PPP,
PPP Loan,
Employee Retention Credit,
Employee Retention Tax Credit,
ERTC
The Employee Retention Tax Credit (ERTC) was enacted as part of the early COVID-19 stimulus measures, and can be claimed through Dec. 31, 2021 by eligible employers who retained employees during the COVID-19 pandemic. Earlier this year, the ERTC was expanded through the American Rescue Plan Act to potentially cover more organizations and situations. While not-for-profit organizations are eager to take advantage of the ERTC, there are some logistical hurdles between taking the credit and reaping its benefits.
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Topics:
NFP,
COVID19,
COVID-19,
Paycheck Protection Program,
PPP,
PPP Loan,
Employee Retention Credit,
Employee Retention Tax Credit,
ERTC
The American Rescue Plan (ARP) Act of 2021 passed in March is the second largest COVID-19 stimulus measure to date and brought significant benefits to individuals, organizations, and benefits offerings. Among the individual rebate checks and expansion to tax credits for parents, there are a handful of provisions of particular interest for not-for-profit organizations. A brief recap of the most notable changes follows.
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Topics:
not-for-profit,
NFP,
Employee Benefits,
Paid Family and Medical Leave,
COVID-19,
Paycheck Protection Program,
PPP,
PPP Loan,
Stimulus,
Employee Retention Tax Credit,
ERTC,
American Rescue Plan (ARP) Act,
ARP Act,
American Rescue Plan
The Employee Retention Tax Credit (ERTC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but limitations on its availability tempered interest in the relief measure. That is about to change, thanks to significant changes made on Dec. 27, 2020, by the Consolidated Appropriations Act, 2021 (the Act). The ERTC is now available to employers that received loans under the Payroll Protection Program (PPP), so any employer meeting ERTC eligibility criteria can benefit. Because employers potentially benefit from the enhanced ERTC on a retroactive basis, employers should immediately begin analyses to identify and calculate the value of retroactive or prospective ERTC benefits.
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Topics:
not-for-profit,
IRS,
NFP,
tax relief,
tax credit,
employees,
COVID-19,
CARES Act,
PPP,
PPP Loan Forgiveness,
Consolidated Appropriations Act,
Employee Retention Tax Credit,
The Act,
ERTC
