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The Employee Retention Credit: Update for the Restaurant Industry

By Business Tax, Credits & Incentives, Insights, Tax Planning & Consulting

On Monday, September 13, 2021, House Ways and Committee Chairman Richard Neal released the first draft of the House Democrats’ tax legislation (including both tax increases and tax relief) they expect to consider as part of the budget reconciliation process, intended to fund key programs under President Biden’s “Build Back Better” program.

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IRS Explains How PPP Loan Borrowers Can Qualify for 2020 Employee Retention Credits

By Credits & Incentives, Insights, Tax Planning & Consulting

On March 1, 2021, the IRS released Notice 2021-20 to provide comprehensive guidance on the Employee Retention Credit (ERC) and formalize the IRS’s FAQs, thereby allowing taxpayers to rely on the guidance for penalty prevention purposes. The notice explains the tax treatment of the ERC and, significantly, provides long-awaited instructions on how Paycheck Protection Program (PPP) loan borrowers may qualify for and claim the ERC for wages paid after March 12, 2020 and before January 1, 2021. Therefore, borrowers who can potentially claim the credit are now better positioned to proceed with applying for PPP loan forgiveness.

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COVID Relief Package Expands the Employee Retention Credit, Permits Full Expensing of Business Meals and Extends Charitable Giving Incentives

By Business Tax, Credits & Incentives, Insights, Tax Planning & Consulting

The $900 billion COVID Relief Package, passed by Congress on December 21, 2020 and headed to President Trump’s desk for signature, contains a number of tax provisions to assist individuals and businesses, in addition to authorizing funding for second rounds of individual stimulus payments and PPP loans.

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Employee Retention Credits Under the CARES Act

By Credits & Incentives, Insights, Tax Planning & Consulting

As a part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted on March 27th, Congress created a new employee retention credit (ERC) for businesses adversely impacted by the ongoing COVID-19 pandemic. This provision was one of several measures included in the Act which are designed to help employers retain employees during the health crisis.

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