{"id":7946,"date":"2021-02-24T18:06:59","date_gmt":"2021-02-25T00:06:59","guid":{"rendered":"https:\/\/whitlockco.websitepreview.dev\/?p=7946"},"modified":"2021-07-03T12:21:28","modified_gmt":"2021-07-03T17:21:28","slug":"expansion-extension-employee-retention-credit","status":"publish","type":"post","link":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/","title":{"rendered":"Expansion and Extension of Employee Retention Credit"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\" wp-image-7956\" src=\"https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit-300x200.jpg\" alt=\"\" width=\"436\" height=\"291\" srcset=\"https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit-300x200.jpg 300w, https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit-600x400.jpg 600w, https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit.jpg 724w\" sizes=\"(max-width: 436px) 100vw, 436px\" \/><\/p>\n<h4><strong>Expansion and Extension of Employee Retention Credit<\/strong><\/h4>\n<p><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">The Consolidated Appropriations Act<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">\u00a0of<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">\u00a02021 passed by Congress in late December<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">\u00a02020<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">\u00a0expands and extends the employee retention credit enacted to encourage businesses to keep employees on their payroll in response to the downturn created by the\u00a0<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">coronavirus disease<\/span><\/span><span class=\"TextRun SCXW129359589 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129359589 BCX9\">.<\/span><\/span> Eligibility for the employee retention credit was originally not available to companies that received PPP loans, but the CAA retroactively changed that so that wages not used for PPP loan forgiveness may now be used for the employee retention credit.<\/p>\n<p><b><span data-contrast=\"auto\">Included in the Expansion<\/span><\/b><b><span data-contrast=\"auto\">:<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Beginning in January<\/span><span data-contrast=\"auto\">\u00a02021<\/span><span data-contrast=\"auto\">, the credit amount is increased from 50% to\u00a0<\/span><span data-contrast=\"auto\">70% of qualified wages.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Qualified wage l<\/span><span data-contrast=\"auto\">imits for employees increased from $10,000 amount paid per employee per year\u00a0<\/span><span data-contrast=\"auto\">in 2020\u00a0<\/span><span data-contrast=\"auto\">to $10,000 paid per quarter<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">through<\/span><span data-contrast=\"auto\">\u00a0July 1, 2021<\/span><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Eligibility\u00a0period expanded through July 1, 2021 that originally was scheduled\u00a0<\/span><span data-contrast=\"auto\">from March 12, 2020\u00a0<\/span><span data-contrast=\"auto\">through January 1, 2021.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Note that wages are not limited to cash payments but include a portion of employer-provided costs for healthcare.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Qualifying Employers Include:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">An employer that fully or partially suspends business in a quarter\u00a0<\/span><span data-contrast=\"auto\">because of\u00a0<\/span><span data-contrast=\"auto\">a government<\/span><span data-contrast=\"auto\">\u00a0order<\/span><span data-contrast=\"auto\">\u00a0related to the COVID-19 virus.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">An employer whose gross receipts for\u00a0<\/span><span data-contrast=\"auto\">2020 to<\/span><span data-contrast=\"auto\">\u00a0comparable quarter in 2019 are 50%\u00a0<\/span><span data-contrast=\"auto\">lower.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">An employer whose gross receipts for 2021 to comparable quarter in 2019 are 20% lower.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Qualifying Wages Include:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Small Employers:<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">Businesses with f<\/span><span data-contrast=\"auto\">ewer than 500 employees (<\/span><span data-contrast=\"auto\">up from 100) receive the credit for wages paid to employees regardless of if they worked or not.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Large Employers:<\/span><\/b><span data-contrast=\"auto\">\u00a0Business with more than 500 employees (up from 100) receive the credit for wages paid to employees who did not work.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">How Employers Receive\u00a0the Credit:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Report qualifying wages on\u00a0<\/span><span data-contrast=\"auto\">Form 941 when submitting Employer\u2019s Quarterly Federal Tax Return.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Reduce\u00a0<\/span><span data-contrast=\"auto\">the\u00a0<\/span><span data-contrast=\"auto\">required deposits of withheld payroll taxes from employees\u00a0<\/span><span data-contrast=\"auto\">by the amount of the credit\u00a0<\/span><span data-contrast=\"auto\">or request an advance of the employee retention credit by submitting Form 7200.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>If you have any questions regarding this expansion and extension, please contact your<strong> Whitlock advisor<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Expansion and Extension of Employee Retention Credit The Consolidated Appropriations Act\u00a0of\u00a02021 passed by Congress in late December\u00a02020\u00a0expands and extends the employee retention credit enacted to encourage businesses to keep employees on their payroll in response to the downturn created by the\u00a0coronavirus disease. Eligibility for the employee retention credit was originally not available to companies that [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":7956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[91,89,31,233,47],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Expansion and Extension of Employee Retention Credit by Missouri CPAs<\/title>\n<meta name=\"description\" content=\"Read about Expansion and Extension of Employee Retention Credit written by The Whitlock Co. and our team of CPAs and business advisors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Expansion and Extension of Employee Retention Credit by Missouri CPAs\" \/>\n<meta property=\"og:description\" content=\"Read about Expansion and Extension of Employee Retention Credit written by The Whitlock Co. and our team of CPAs and business advisors.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/\" \/>\n<meta property=\"og:site_name\" content=\"The Whitlock Co.\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-25T00:06:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-03T17:21:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"724\" \/>\n\t<meta property=\"og:image:height\" content=\"483\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"client_admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"client_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Expansion and Extension of Employee Retention Credit by Missouri CPAs","description":"Read about Expansion and Extension of Employee Retention Credit written by The Whitlock Co. and our team of CPAs and business advisors.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/","og_locale":"en_US","og_type":"article","og_title":"Expansion and Extension of Employee Retention Credit by Missouri CPAs","og_description":"Read about Expansion and Extension of Employee Retention Credit written by The Whitlock Co. and our team of CPAs and business advisors.","og_url":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/","og_site_name":"The Whitlock Co.","article_published_time":"2021-02-25T00:06:59+00:00","article_modified_time":"2021-07-03T17:21:28+00:00","og_image":[{"width":724,"height":483,"url":"https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit.jpg","type":"image\/jpeg"}],"author":"client_admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"client_admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/#article","isPartOf":{"@id":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/"},"author":{"name":"client_admin","@id":"https:\/\/whitlockco.com\/#\/schema\/person\/a865622af451291a8659e608ac2e054c"},"headline":"Expansion and Extension of Employee Retention Credit","datePublished":"2021-02-25T00:06:59+00:00","dateModified":"2021-07-03T17:21:28+00:00","mainEntityOfPage":{"@id":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/"},"wordCount":319,"commentCount":0,"publisher":{"@id":"https:\/\/whitlockco.com\/#organization"},"image":{"@id":"https:\/\/whitlockco.com\/expansion-extension-employee-retention-credit\/#primaryimage"},"thumbnailUrl":"https:\/\/whitlockco.com\/wp-content\/uploads\/2021\/02\/Tax-Credit.jpg","articleSection":["Accounting &amp; 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