Yes, you can claim ERTC even if you received PPP funds.
The reason is, “The American Rescue Plan Act of 2021” modified and expanded the previous stimulus programs.
With the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), businesses could choose to apply for PPP or claim ERTC credits, but not both.
Most businesses with under 500 employees opted to receive forgivable PPP Loans.
But now you can actually qualify for both government programs.
ERTC credits can be retroactively claimed for businesses that qualified in 2020.
In fact, the refundable credit amount increased from 50% of qualifying wages in 2020 to 70% in 2021.
ERTC vs PPP
The CARES Act included two programs.
Both aimed to help businesses keep workers employed.
1- the Payroll Protection Program (PPP) is administered by the Small Business Administration and
2- the Employee Retention Tax Credit (ERTC) is run by the Internal Revenue Service.
PPP funds are distributed based on 2.5 months of payroll and a minimum of 80% of the funds must be used on payroll to be eligible for forgiveness. PPP funds are not taxable as revenue and you may still take deductions for the payroll covered by PPP.
ERTC tax credits (or refunds) are for a percentage of payroll in each quarter that you qualify. There are rules to determine eligibility by quarter.
The challenge with ERTC is calculating the qualifying payroll, wages, and filing the necessary tax returns to get these credits.
Asure’s ERTC tax filing service will calculate your refund and then file the amended tax returns on your behalf.
So whether you’re one of Asure’s 90,000 business clients or you’re new to Asure, we can help you get up to $26,000 per employee.