ManybusinesseswereimpactedbyCovidand willqualifyforarefund
ClaimaCOVIDpayrollrefundERCisagovernmentstimulusprogram designedtohelpthosebusinessesthatwereabletoretaintheir employeesduringtheCovid-19pandemic.
Upto$26,000peremployeeRefundcanbeusedforany purposeQualifywithadisruptioninbusinessoperationsora revenuedeclineAnyCompanycanreceiverefundsevenifthey receivedPPPNoupfrontfees. Anyonecanapplyforrefundsfor2020and2021 afterDecember31stofthisyear,into2022and 2023.
Thereareclientswhoreceivedrefundsonly, andothersthat,inadditiontorefunds,also qualifiedtocontinuereceivingERCinevery payrolltheyprocessthroughSeptember30, 2021,atabout30%oftheirpayrollcost. Someclientshavereceived refundsfrom$100,000to$6 million.
UndertheConsolidatedAppropriationsAct,businessescannow qualifyfortheERCeveniftheyalreadyreceivedaPPPloan.
NotethattheERCwillonlyapply towagesnotusedforthePPP. AnybusinessqualifiesfortheERC,ifitfalls underoneofthefollowing:Agovernment authorityrequiredpartialorfullshutdownof businessduring2020or2021.
Toqualify,abusinessmusthavebeennegativelyimpactedineitherofthe followingways:Agovernmentauthorityrequiredpartialorfullshutdownof anybusinessduring2020or2021.
Abusinesscanbeeligiblefor onequarterandnotanother.
Initially,undertheCARESActof2020, businesseswerenotabletoqualifyfor theERCiftheyhadalreadyreceiveda PaycheckProtectionProgramloan.
