Your company can now exclude certain things from gross receipts when determining if you’re eligible to claim the Employee Retention Credit (ERC).
IRS Revenue Procedure 2021-33 spells out a new safe harbor for employers.
Here’s the scoop.
What will earn you the safe harbor
In order to determine whether you’re an eligible employer for a calendar quarter to claim the ERC on your employment tax return, you can exclude these three things:
- the amount of the forgiveness of a Paycheck Protection Program (PPP) Loan
- the Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, and
- the Restaurant Revitalization Grants under the American Rescue Plan Act.
And stay consistent, reminds IRS — your company must exclude those amounts in which gross receipts are relevant each quarter.