The CARES Act helped many business owners, but the downside initially was that you had to choose between employee retention credit (ERC) and tax-free loan forgiveness (PPP). But there’s some good news!
As of December 27th, 2020, the Consolidated Appropriations Act (CAA) makes it possible for business owners to claim both the PPP and ERC. Even better news—This change can be applied retroactively, which is great for those who already claimed one of the options.
A Simplified Look at How it Works
Before the CAA, you couldn’t claim ERC if you’d already claimed PPP. But now, you can revise your 2020 Form 941s to get the credit (Assuming you qualify. Contact us to learn more). You can also choose not to claim the ERC, which could possibly increase the money you get from PPP.
If you haven’t applied for PPP loan forgiveness yet, there are a few ways you can make sure you get as much money as possible from the ERC. For example, you could include your non-payroll expenses or omit ERC-qualified wages on the application.
There are a lot more strategies you can do to reap the benefits, but this is a great opportunity overall if you qualify for it. However, it’s a pretty tricky process and you might need some professional assistance to reap the benefits. That’s where we can help!
Get Your Business Accounting & Tax Services Consultation
Integrated Accounting & Tax is a woman-owned accounting firm with services tailored to each client’s unique needs and goals. We guarantee that every service we provide is essential and propels your goal.
Contact us today for a free business accounting and tax services consultation. We have locations in Prior Lake, MN, and Ft. Lauderdale, FL, and can provide service to surrounding areas.