Columbus Indian Community - ColumbusIndian.net
| | |
 


 

Gross Receipts Safe Harbor for Employers Claiming ERC - Sep 2021

Money
Contributed by : Mukesh Makker
Add To My Favorite
Share With Your Friends



Safe harbor is now available that allows employers to exclude certain items from their gross receipts solely for determining eligibility for the Employee Retention Credit (ERC). These amounts are:



  • The amount of the forgiveness of a Paycheck Protection Program (PPP) Loan;

  • Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act; and

  • Restaurant Revitalization Grants under the American Rescue Plan Act of 2021.


An employer elects to apply the safe harbor by excluding these amounts solely for determining whether it is an eligible employer for a calendar quarter for purposes of claiming the ERC on its employment tax return.


The safe harbor should be applied consistently to determine eligibility for the ERC. Employers must exclude the amounts from their gross receipts for each calendar quarter in which gross receipts are relevant to determining eligibility to claim the ERC. Furthermore, the employer claiming the credit must also apply the safe harbor to all employers treated as a single employer under the aggregation rules.


Employers claim the ERC on their employment tax return, generally Form 941, Employers Quarterly Federal Tax Return, or adjusted employment tax return, generally Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.


Please note that an employer is not required to apply this safe harbor, and the safe harbor does not permit the exclusion of these amounts from gross receipts for any other federal tax purpose.


Further changes may be forthcoming pending legislation; however, if you have any questions or would like more information about the latest guidance regarding the ECR, don't hesitate to call the office now.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: https://taxprofessionalsnw.com/newsletter.php#8

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

Nikita Rawal gets a birthday surprise by her fans; watch her reaction
International Cricketing Legends to play for Friendship Cup UAE in Sharjah
IMPORTANT TAX CHANGES FOR INDIVIDUALS AND BUSINESSES - Jan 2020
View All Articles

Featured Contributors


Vivek Wadhwa

Shruti Sadolkar

Rima Arora
Rima Arora

Vasudha Sharma

Tahmina Watson

Aayushi Manish
Aayushi Manish

Darshan Goswami

Christine Dunbar

Dilip Saraf
Dilip Saraf

Latest Articles

San Jose Resident Travels to D.C. to Urge Congress to Ensure Childhood Cancer Research Remains a National Priority by Priscilla Cabral
Discover Proven Strategies for Healthy Living Today by Anya Willis
4 Healthy Ways to Help You Maintain Your Sobriety by Anya Willis
Akshay Kumar unveils New BTS Video for "Bade Miyan Chote Miyan by Staff
Akshay Kumar Unveils Soul-Stirring Music Video "Shambhu" Dedicated to Lord Shiva by Staff
View All Articles