Employee Retention Credit (ERC) and Paycheck Protection Program (PPP) Flowcharts

We wanted to share some information with you about the ERC (a payroll tax credit) and PPP in case you were wondering if either might apply to your business. We will be talking about this as well as other topics and items on our webinar January 12th but wanted to get a few decision flowcharts in front of you on these topics to help guide you if your business is eligible to take advantage of these programs.

Employee Retention Credit: There is a potential payroll tax credit for the first two quarters of 2021 and a potential retroactive payroll tax credit for 2020 available as well. The below decision flowcharts (one for 2020 and one for 2021) will help you determine if you might be eligible for this in either 2020 or 2021 (the rules are different for 2020 and 2021 thus the need for two different flow charts).

Employee Retention Credit 2020

Employee Retention Credit 2021

Did you obtain an original PPP Loan and use (or intend to use) all the proceeds as required? The below decision flowchart will help you determine if you might be eligible for a second draw PPP loan.

PPP Flowchart 2021_FINAL

Register here for our webinar on January 12, 2021,11:00 ET,10:00 CT.

If you have any questions on the decision flowcharts please contact Matt Folz, CPA for ERC mfolz@hsccpa.com or Scott Touro, MBA for PPP stouro@hsccpa.com

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