Allergy practices may have new opportunities to claim the Employee Retention Credit (ERC) thanks to the Cares 2.0 Act. One provision that applies retroactively to 2020 allows an employer that received a PPP loan also to be eligible to claim the ERC. In addition, the ERC was extended through July 1, 2021 and the credit percentage was increased from 50% to 70%. It also increased the per employee limitation from $10,000 per year to $10,000 per calendar quarter. To qualify in 2021 for the ERC, the employer’s gross receipts for a calendar quarter must be less than 80% of the same calendar quarter in 2019. Practices should seek further information from their tax consultants to determine whether they qualify for the ERC.
Cares 2.0 Act expands options for Employee Retention Credit