While the amounts received from the other coronavirus relief programs listed above already are excluded from an employer's gross income, they must be included in its gross receipts unless the safe harbor is used, the IRS said.Īccording to the IRS, the safe harbor is needed because Congress intended that employers be able to participate in these other coronavirus economic relief programs and simultaneously claim the ERC, provided that the same wage dollars that are paid for or reimbursed with other relief program funds are not treated as qualified wages for purposes of the ERC. 117- 2.Īn employer may be eligible for the ERC if its gross receipts for a calendar quarter decline by a certain percentage as compared with a prior calendar quarter. 116- 260 and Restaurant Revitalization Fund (RRF) grants under the American Rescue Plan Act, P.L. The amounts that can be excluded in calculated gross receipts include: the forgiveness of Paycheck Protection Program (PPP) loans Shuttered Venue Operators Grants (SVOGs) under the Economic Aid to Hard- Hit Small Businesses, Nonprofits, and Venues Act, part of the Consolidated Appropriations Act, 2021, P.L. The IRS issued a safe harbor that allows an employer to exclude certain amounts received from other coronavirus economic relief programs in determining whether it qualifies for the employee retention credit (ERC) based on a decline in gross receipts (Rev.
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