Armanino Blog

As States Shut Down Again Organizations May Be Eligible for the Employee Retention Credit

by Jenn McCabe
July 14, 2020

This tax credit is up to $5000 per employee in 2020 and can be immediately applied to payroll taxes. It's specifically meant to help employers who do not lay off or furlough staff, despite having been partially or fully shut down due to a government order.

Credit applies to wages paid to an employee who remains on payroll, despite being temporarily unable to perform job duties. The government shut-down orders are particularly relevant at this time!

  • Any employer who did not receive a PPP loan qualifies.
  • An organization may also qualify for this credit if revenues dropped by more than 50% in Q2 of 2020 as compared to Q2 of 2019.
  • The credit is available for wages paid between March 13 and December 31, 2020.

Of course, there's paperwork to file and work to do to calculate and validate the credit. We are ready to assist you.

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Jenn McCabe - Partner, Outsource HR - El Segundo CA | Armanino
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