PPP or the Employee Retention Credit? Check With Us First
Before you execute a Paycheck Protection Program (PPP) loan option, we suggest contacting us. PPP may indeed be a good choice for you, but there are other tax options that might be more beneficial to your business. Business owners (regardless of business size) whose operations have been fully or partially suspended by government order, or who have seen a significant drop in income of more than 50% compared with the same quarter in the previous year, may be eligible for the Employee Retention Credit. According to the IRS, the refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. Qualifying wages include those paid between March 12, 2020, and January 1, 2021.
Notably, though, accepting a loan from the Small Business Administration via the PPP will negate an employer’s ability to claim this credit. This could be particularly problematic for some business owners who stand to benefit more from this credit than they would by taking a loan via the PPP. So, contact us and we can help you determine which option would be better for your business.