Are you taking advantage of the Employee Retention Credit (ERC)? March 12, 2021This is the first time in tax credit history that businesses of ALL sizes and in all industries can benefit from the same program! There is much awareness of the Paycheck Protection Program (PPP) which has received a lot of news attention and hype. What you are probably not hearing about, or if you are, you might not really understand the details, is the Employee Retention Credit (ERC) that can also be very beneficial. This is not a loan but an above-the-line, refundable payroll tax credit that offsets a business’ federal tax withholdings. This refundable payroll tax credit, capped at $33,000 per employee, is a significant opportunity to infuse cash quickly into your business.Per the Consolidated Appropriations Act of 2021, businesses can now benefit from Paycheck Protection Program (PPP) loan forgiveness and remain eligible for the Employee Retention Credit (ERC), as long as they don’t use the same wages to calculate both. This means a proactive strategy is needed to maximize PPP loan forgiveness and fully leverage the benefits of ERC.Furthermore, on March 1, 2021 the IRS released fresh guidance for employers claiming the ERC for 2020. This included guidance on excess payroll costs for PPP Loans that have already been forgiven, defining a “nominal portion of business operations,” and providing substantiation requirements. Read the full notice here.NEXT STEPSKatzAbosch can help you create an overarching strategy that incorporates PPP, ERC and other tax credits and incentives to help you maximize cash flow. Our dedicated PPP and ERC teams are well-versed in the latest guidance and can help you achieve the best-possible long-term benefit to your business.If you would like to discuss your ERC and PPP forgiveness strategy, please mention it to your KatzAbosch representative or contact us today.For more information on accounting services, visit: Financial Statements, Employee Benefit Plan Audits, Nontraditional Engagements, Internal Control Studies, Surprise Examinations Under SEC or State Custody Rules, or Due Diligence Services.About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.