Masked deli employee handing carryout bag to customer
Masked deli employee handing carryout bag to customer

what you need to know about the employee retention tax credit

New IRS changes mean good news for businesses who received Paycheck Protection Program loans.

With the tax filing deadline approaching, you may want to double check your company is getting all the help available from government programs. This means ensuring you’ve utilized the Employee Retention Credit (ERC), a refundable tax credit designed to make it easier for businesses to keep employees on the payroll despite challenges posed by COVID-19.

The ERC is getting extended as part of the American Rescue Plan Act, signed by the President on March 11. Scheduled to end June 30, the ERC will be available through the end of 2021.

Businesses receiving PPP loans are now eligible for the Employee Retention Credit

Besides the calendar extension, businesses that received Paycheck Protection Program (PPP) funding are now eligible for the ERC and can file amended tax returns to claim the ERC for 2020 and/or claim an ERC in their 2021 tax filing.

So, what does this mean for your business?

Andy Hauck, Chief Commercial Banker, First Financial Bank, recently connected with Donny Lucaj, Certified Public Accountant, Plante Moran, Tax Solutions Group, to talk about the details to help you understand and take advantage of the government’s expanded benefit program.

Andy Hauck headshot

Andy Hauck
Chief Commercial Banker

First Financial Bank

Donny Lucaj headshot

Donny Lucaj
Certified Public Accountant

Plante Moran, Tax Solutions Group

In the video they discuss:

  • Understanding the most significant aspects of the Employee Retention Credit, including recent changes and expansions
  • How to determine if your business is eligible and how to compute qualified wages for 2020 and 2021
  • Identifying best-case examples and scenarios for utilizing the credit
  • Evaluating the impact of the ERC on income tax returns, payroll tax returns, and PPP loan forgiveness application

If you have more questions on how to file for the credit, it’s best to reach out and consult with a tax professional. Visit IRS.gov/coronavirus/employee-retention-credit for more details on the credit and extension information. The IRS expects to update the information on this page over the next few days and weeks.


The information on this page is accurate as of April 2021 and is subject to change. First Financial Bank is not affiliated with any third-parties or third-party websites mentioned above. Any reference to any person, organization, activity, product, and/or service does not constitute or imply an endorsement. By clicking on a third-party link, you acknowledge you are leaving bankatfirst.com. First Financial Bank is not responsible for the content or security of any linked web page. Member FDIC / Equal Housing Lender.

You’re about to leave bankatfirst.com

First Financial Bank is not affiliated with any third-party websites. Any reference to any person, organization, activity, product, and/or services does not constitute or imply an endorsement. First Financial Bank is not responsible for the content or security of any linked web page.