New Employee Retention Credit safe harbor announced by IRS
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.
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