PPP Loan Recipients and ERC

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The Economic Aid Act, included in the 2021 Consolidated Appropriations bill, changed the rules for the Employee Retention Credit. The previous limitation disallowing PPP loan recipients from claiming the Employee Retention Credit has been removed. This credit has the potential to return significant amounts to businesses impacted by COVID-19.

How much is the credit worth?

    • Up to $10,000 per employee per year reimbursed at a rate of 50% – so up to $5,000 per employee
    • Up to $10,000 per employee per quarter (for Q1 and Q2) reimbursed at a rate of 70% – so up to $14,000 per employee

How do I know if I qualify?

We’ve created a flow chart to help you determine whether you qualify! Complete the form below to access our ERC flow chart.

What do I do if I think I qualify?

Reach out to your PBMares advisor, who can help you through the process!

It is important to note that the Employee Retention Credit cannot be claimed for the same wages that the PPP loan reimbursed (no double-dipping on the same exact payroll) but can be claimed for periods outside of those the PPP was used.

Have questions? Contact your PBMares tax advisor today. You may also want to register now for our webinar on April 21, 2021 from Noon to 1pm.

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