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Old 07-20-2020, 01:23 PM
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Exclamation Retention Credit before PPP loan?

My client was forced to close his office due to government order. He had an employee who worked from home and continued getting regular salary the entire 2nd quarter 2020. He received the PPP loan on May 4. I know that he cannot claim the employee retention credit for wages paid after he received the PPP loan. But can my client claim the employee retention credit for wages paid to employee from March 13 through May 3?

What about for those business who have applied for but have not yet been approved for the PPP loan? Can they claim the employee retention credit?



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Old 07-26-2020, 09:48 AM
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Originally Posted by Jerald View Post
My client was forced to close his office due to government order. He had an employee who worked from home and continued getting regular salary the entire 2nd quarter 2020. He received the PPP loan on May 4. I know that he cannot claim the employee retention credit for wages paid after he received the PPP loan. But can my client claim the employee retention credit for wages paid to employee from March 13 through May 3?

What about for those business who have applied for but have not yet been approved for the PPP loan? Can they claim the employee retention credit?
My client was forced to close his office due to government order. He had an employee who worked from home and continued getting regular salary the entire 2nd quarter 2020. He received the PPP loan on May 4. I know that he cannot claim the employee retention credit for wages paid after he received the PPP loan. But can my client claim the employee retention credit for wages paid to employee from March 13 through May 3?=========> your client may not receive the ERC since he received a PPP loan authorized under the CARES Act. An Eligible Employer that receives a PPP loan, regardless of the date of the loan, cannot claim the Employee Retention Credit. The only exception would be an employer who repaid the PPP loan by May 18, 2020. if the loan was repaid by May 18, 2020, the employer will be treated as though it had not received a covered loan under the PPP for purposes of the ERC



What about for those business who have applied for but have not yet been approved for the PPP loan? Can they claim the employee retention credit?===========>> even though they don?t qualify for the PPP , they still can be eligible for employee retention tax credits
Aslong as they keep their employees on payroll, or if they paid COVID-19-related sick leave for employees, or if they had to suspend operations.



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Old 07-27-2020, 10:36 AM
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WHAT DO YOU MEAN BY THIS: "even though they don?t qualify for the PPP , they still can be eligible for employee retention tax credits
Aslong as they keep their employees on payroll, or if they paid COVID-19-related sick leave for employees, or if they had to suspend operations."

They applied for the PPP but have not yet been approved. They may be approved in the next day or two. Can they claim the ERC for Q2 2020?



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Old 07-30-2020, 07:36 PM
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Originally Posted by Jerald View Post

They applied for the PPP but have not yet been approved. They may be approved in the next day or two. Can they claim the ERC for Q2 2020?
No I don?t think so ;say once an employer that applied for a PPP loan, received payment, and repays the loan by May 18, 2020 (originallyMay 7, 2020, as provided by the Limited Safe Harbor With Respect to Certification Concerning Need for PPP Loan Request in the Interim Final Rules issued by the SBA effective on Apr 28, 2020, but extended on May 5, 2020 and May 13, 2020, respectively), will be treated as though the employer had not received a covered loan under the PPP for purposes of the ERC. Therefore, the employer will be eligible for the credit aslongas the employer is otherwise an Eligible Employer satisfying all the requirements.



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