This is HUGE:
Extension and expansion of the Employee Retention Tax Credit through July 1, 2021. The bill increases the refundable payroll tax credit from a maximum of $5,000 to $14,000 by changing the calculation from 50% of wages paid up to $10,000 to 70% of wages paid up to $10,000 for any quarter. The bill clarifies that businesses will now be able to take the Employee Retention Tax Credit and participate in the PPP.
Back when PPP was all the hype but ERTC wasn't allowed for companies that received PPP, I noticed that for many ERTC was higher than PPP. Now that both can be taken (although I'm assuming not concurrently) ERTC will be a serious benefit.
It seems that this is not HUGE it's just HUUUUUUUUUUUUUGGGGGGE as our president likes to say.
Since the PPP eligibility change is retroactive most people should be eligible for at least $5,000 per employee credit for 2020 for each employee paid $10,000 in excess of PPP payroll. And I'm not speaking about going forward.
For those who didnt pay in excess of PPP forgiveness payroll it could still be a good idea to add another $10,000 in 2020 payroll as 50% of it will be sponsored by Uncle Sam (But it needs to match with the guidelines an being in the quarter of the lockdown or other guidance and PPP payroll needs to be within 24 weeks of application