1 min read The American Rescue Plan Extends COVID Tax Credit for Employers
Many employers are not aware that they may be eligible for additional payroll assistance under the American Rescue Plan (ARP) signed into law by President Biden on March 11th, 2021. The Employee Retention Credit (ERC), previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law by former President Trump on March 27, 2020, has been extended to 2021 and expanded retroactively and prospectively to qualified employers for qualified wages not used to offset Payroll Protection Program (PPP) loans when applying for forgiveness.
This means that under the American Rescue Plan qualified businesses may receive Employee Retention Credits of up to $7,000 per employee per quarter for 2021, and up to $5,000 per employee for 2020, in addition to forgiveness of their PPP loans.
