Tax Alert: New IRS Guidance for Employers Claiming the CARES Act Employee Retention Credit
August 27, 2021 at 11:02 am EDT
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Recently issued IRS guidance, Notice 2021-49, provides important information for employers claiming the employee retention credit originally enacted in the Coronavirus Aid, Relief, and Economic Security Act and later updated by the American Rescue Plan Act of 2021. A high-level overview of the guidance is as follows:
Credit is available on eligible wages in the second half of 2021
'Recovery startup businesses' (business that began after 2/15/20, with annual gross receipts under $1,000,000, that is not otherwise an eligible employer) are eligible for up to $50,000 in ERTC
Certain wages are not eligible (i.e., payroll costs in connection with a shuttered venue grant, restaurant revitalization grants, nor wages paid to majority owners and their spouses with some additional stipulations)
Clarified certain wages are eligible (i.e., tips)
As always, we at First Advantage will continue to monitor all IRS guidance and all future legislative action. Please ensure you are subscribed to our Tax Alerts to stay informed! If you have any questions on the programs discussed in this alert and how they might impact you, please contact your First Advantage Tax Consultant or your legal counsel.
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First Advantage Corporation published this content on 27 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 15:01:06 UTC.
First Advantage Corporation is a background check company. The Company is a provider of employment background screening and verification solutions. Its product suite enables its customers across all industry sectors to perform pre-onboarding screening and post-onboarding monitoring of employees, contractors, contingent workers, drivers, tenants, and volunteers. Its pre-onboarding products include criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening and others. The Companyâs post-onboarding solutions include criminal records monitoring, healthcare sanctions, motor vehicle records, social media and global sanctions and licenses. The Company also offers fleet compliance, hiring tax credits and incentives, tenant screening and investigative research.