Eligible Employer Determination

An eligible employer must meet one of two tests with respect to a calendar quarter between 3/13/2020 through 6/30/2021:

1. Fully or partially suspended operations during the calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19, or

2. Experienced a significant decline in gross receipts during the calendar quarter

•For 2020 quarters, less than 50% of gross receipts compared to the same quarter in 2019.
•For 2021 quarters, less than 80% of gross receipts compared to the same quarter in 2019.

PPP loan recipients can receive the employee retention credit. PPP loan recipients were originally excluded for the credit.

For 2020 quarters:

• Maximum of $10,000 per employee over all quarters.

• If you had more than 100 employees during 2019, then wages paid to employees not providing services due to shutdown order or decline in gross receipts.

– Amount cannot exceed what the employee would have been paid for working an equivalent duration during the 30 day immediately preceding such period.

• If you had 100 or fewer employees during 2019:

– All wages paid to all employees
– All wages paid to all employees during period of government order

For 2021 quarters:

• Maximum of $10,000 per employee per quarter.

• If you had more than 500 employees during 2019, then wages paid to employees not providing services due to shutdown order or decline in gross receipts.

• If you had 500 or fewer employees during 2019:

– All wages paid to all employees
– All wages paid to all employees during period of government order