GCCA Signs Letter Related to the Employee Retention Tax Credit
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GCCA signed a letter with 129 organizations requesting improved policies related to the Employee Retention Tax Credit. The letter explained how the Jumpstarting Our Businesses’ Success Credit (JOBS Credit) Act of 2020 (H.R. 6776) would enhance the Employee Retention Tax Credit. A selection of the policy enhancements include:
An expansion of the credit percentage from 50 percent to 80 percent of qualified wages
An increase of the per-employee limitation from $10,000 for all calendar quarters to $15,000 per calendar quarter (and an aggregate of $45,000 for all calendar quarters)
A change to the threshold for treatment as a large employer from employers having more than 100 employees to employers having more than 1,500 employees (based on the average number of full-time employees in 2019) or having gross receipts above $41.5 million in 2019
A phased-in credit, which will allow employers with more than a 20 percent decline in gross receipts to be eligible for a portion of the credit
Improved coordination between the ERTC and the Paycheck Protection Program so employers can be eligible for both programs, but with guardrails in place to prevent “double dipping.”
