The Payroll Protection Program became the primary focus for business financial relief when the Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed in March 2020. The program's objective was to quickly provide financial assistance to small businesses affected by COVID-19, particularly during the Spring 2020 government-mandated business closures. Business owners could simply work with their local bankers to apply for and obtain a loan because the application process was quick. Loan forgiveness was simple for the majority of small businesses later in 2020.
However, the Employee Retention Tax Credit (ERTC) was an additional program included in the CARES Act. Businesses impacted by the COVID-19 pandemic may benefit from this credit, which has the potential to provide much-needed additional funds. The Employee Retention Credit was given to businesses that were still working to keep their employees, or to a slightly larger group of businesses that paid employees to not work while they waited for government shutdowns to end.
The eligibility requirements for the ERTC have undergone two revisions over the course of the past year. As a result, a greater number of businesses are now eligible to receive the credit. Let's find out more about the Employee Retention Tax Credit, including how it works, who qualifies, and how much money could be at stake.