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