While we have been working hard to serve you this Tax Madness (March Craziness?) Season, Congress has now extended the Employee Retention Credit program through the end of 2021.
To qualify for this credit, you must:

  1. Have employees on payroll.
  2. Be able to show a decrease in quarterly gross receipts in 2021 of at least 20% compared to the same quarter in 2019. OR Be able to show a decrease in quarterly gross receipts of at least 20% when comparing the most recent quarter to the same quarter in 2019. (i.e., For 1st Quarter 2021, you would compare 4th Quarter 2020 to 4th Quarter 2019.)
  3. If you do not meet either of the gross receipts test in the second requirement, you can still qualify for the credit if your business is subject to a full or partial suspension of business operations due to governmental orders limiting commerce, travel, or group meetings due to COVID-19.
For each quarter you meet the criteria outlined above, you are eligible to claim a credit equal to 70% of each employee’s applicable wages for a maximum of $7,000 per employee. There are limits on which employees qualify and there are limits on the wages you can use if you also have a PPP loan that was disbursed in 2021 or only qualify due to a suspension of operations.

For those of you currently utilizing a PPP loan disbursed in 2021, please reach out to us before claiming the credits with your payroll provider. You could inadvertently reduce the amount of your loan that ultimately gets forgiven.

Otherwise, if you have any questions or would like assistance determining your eligibility, please do not hesitate to reach out to us.

Our goal is always to provide you with quality service, even if it takes a little longer, and this year is no different. We sincerely appreciate your patience as we navigate the busiest tax season yet!


--The Team at Rader & Rader