IRS Provides Guidance for Employers Claiming the Employee Retention Credit for First Two Quarters of 2021

The Internal Revenue Service has issued guidance for employers claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).

Notice 2021-23 explains the changes to the Employee Retention Credit for the first two calendar quarters of 2021, including:

  • The increase in the maximum credit amount,
  • The expansion of the category of employers that may be eligible to claim the credit,
  • Modifications to the gross receipts test,
  • Revisions to the definition of qualified wages, and
  • New restrictions on the ability of eligible employers to request an advance payment of the credit.

Click here for more information on Notice 2021-23 >>> 

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