The Consolidated Appropriations Act, 2021 (CAA) which was signed into law on December 27, 2020, modified a number of employer payroll credits previously enacted.
The modifications to the Employee Retention Credit (ERC) are some of the most time sensitive contained within the CAA. These modifications to the ERC are included in the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR). The TCDTR addresses that those employers who previously received Paycheck Protection Program (PPP) loans may be eligible for the ERC. For eligible employers, the ERC may be claimed retroactive effective for qualified wages paid after March 12, 2020 and before July 1, 2021.