ERCFrameBloghaspublishedanewarticleentitled"Covid-19ReliefFundProgramEligibilityIf YouGotPPPForMedicalPracticesCalifornia",whichshedslightonthemostimportantaspects ofhowaPPPloancanaffectanowner'seligibilityfortheEmployeeRetentionCredit
Specifically,theERTCisnotavailableforwages thatwerepaidwiththeproceedsofaPPPloanthat wasforgiven.
ThisshouldbeofparticularinteresttoCaliforniaMedicalPractices businessownersbecauseThefactthattheERTCmaybereducedby theamountofPPPreceivedissignificantbecauseitaffectstheamount ofcreditthatmedicalpracticecanobtain.
Ifapracticereceivedsignificant fundingthroughthePPP,itmight notbeeligibleforthefullamountof theERTC. Furthermore,becauseitdetermineswhich wagesareeligibleforthecredit,thefact thattheERTCisnotavailableforwages paidwiththeproceedsofaforgivenPPP loanissignificant.
IfamedicalpracticereceivedaPPPloanandhaditforgiven,the wagespaidwiththeproceedsarenotERTCeligible.
Thisinformationisimportantfor medicalpracticestoknowwhen determiningtheireligibilityforcreditand theamountthattheymaybeableto receive.
Thearticle'smostimportantinformationistheeligibility requirementsfortheEmployeeRetentionTaxCredit andtheeffectofthePaycheckProtectionProgramona medicalpractice'sabilitytoreceiveanEmployee RetentionCredit.
ThisinformationiscriticalforCaliforniamedicalpracticestounderstand becauseitdetermineswhethertheyareeligiblefortheERTCand,ifso, howmuchcredittheycanreceive.
Thebestexampleofthisisperhapsfoundinthe followingextract:'TheEmployeeRetentionTax Creditisagovernment-fundedfinancialassistance programdesignedtoassistbusinessesaffectedby theCOVID-19pandemic,includingmedical practicesinCalifornia. Businessesmusthaveexperienceda significantdropingrossreceiptsor havebeenforcedtosuspend operationsduetothepandemictobe eligiblefortheERTC.
