If you are wondering about the expanded Employee Retention Credit (ERC) that was recently made available through the Consolidated Appropriations Act (CAA), we have the following information to consider.
- This credit is only available for employers that had a full or partial suspension of their business during any calendar quarter of 2020 because of government limiting commerce, travel, or group meetings due to COVID-19 OR a significant reduction (20% or more under the new regulation) in gross receipts when comparing year over year quarters.
- You’ll want to confer with your business or tax advisor to confirm whether or not you fit under one of the two scenarios listed above and the amount. RMI does have wage information if you need reporting help to calculate the amount.
- If you qualify, this credit is made available by RMI reducing the 941 filing, which is done each calendar quarter. RMI will be filing the 2020 4th quarter 941 by Wednesday, January 27th, 2021. If you would like RMI to include amounts you determine you qualify for, they need to be submitted to RMI by the end of day on Tuesday, January 26th, 2021. If you request a qualified amount, please provide adequate documentation showing how the amount was determined (for our records.)
Keep in mind that whether or not you qualify for the credit is based on the impact of COVID on your individual business and as such, you will want to seek advice from a consultant. RMI is required to provide a schedule to the IRS that shows which companies have applied for this credit and the amount.