APRA Extended & Expanded Provisions – ERC

The American Rescue Plan Act of 2021 (ARPA, 2021) signed into law last week extends and expands provisions found in the Families First Coronavirus Relief Act (FFCRA), Coronavirus Aid, Relief and Economic Security (CARES) Act, and the Consolidated Appropriations Act, 2021 (CAA).

Employee Retention Credit (ERC)

• Extends the ERC from June 30, 2021 until December 31, 2021.
• Allows the credit to be claimed against Medicare (1.45%) taxes only.
• Qualified wages paid by an employer taken account as payroll costs under (1) Second Draw PPP loans; (2) shuttered venues assistance and (3) restaurant revitalization grants are not eligible for the ERC.