ERTC Eligibility Changes – 2020/2021 Small Business Tax Credits Report Launched

This new, secure questionnaire included in a report launched by Scott Hall can determine an employer's eligibility for ERTC with the most up-to-date requirements as of January 2022.

Since it was originally passed in 2020, the CARES Act has been amended several times, changing the eligibility requirements for the Employee Retention Tax Credit (ERTC) program. The updated guidelines are explained in a new video launched by Scott Hall, and eligibility can be determined by answering a few non-proprietary questions.


To watch a short video explaining the new eligibility requirements, please visit https://vimeo.com/661297978


As explained in the new video, in 2020 employers had the option to enroll in either the Payroll Protection Program (PPP) or the ERTC program, but not both. At the time, the PPP offered employers more potential funds, and so many business owners enrolled in that program, believing it made them ineligible for ERTC.


In 2021, when the Consolidated Appropriations Act was passed, it made amendments to the CARES Act, including some changes to the ERTC eligibility requirements. Employers who enrolled in the PPP are now eligible to apply for Employee Retention Credits as well, including making a retroactive claim for wages paid in 2020.


To make a retroactive claim, employers can either contact an ERTC specialist or fill out and return a 941-X form, which will make amendments to their 2020 filing. The ERTC program has gone through several changes since the CARES Act was passed in 2020, which have increased the amount employers can claim, as well as updating the rules for eligibility.


While employers could claim a maximum of $5,000 per employee, per quarter of 2020, that amount was increased for 2021. The maximum claim amount for wages paid between January and September 2021 is 70% of the first $10,000, or $7,000 per employee, per quarter.


Another common misconception held by many employers is that the ERTC is a loan program, like the PPP. This is not true, and any tax credits claimed through the ERTC do not have to be repaid.


A spokesperson for the company said, “This act has now become the second-largest source of providing financial assistance to small businesses during the pandemic. As of today, more businesses can make use of this act.”


To learn more about ERTC, or to take a short eligibility quiz with no obligation, please visit https://scotthall.co/employee-retention-tax-credit


Release ID: 89061469