Exactly nine months after signing the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law, on December 27, 2020, former President Trump signed the Consolidated Appropriations Act, 2021 (Appropriations Act). The CARES Act established the Paycheck Protection Program (PPP) and the potentially lucrative payroll tax credit known as the Employee Retention Credit (ERC). The Appropriations Act extended and modified the PPP and ERC. Both programs were further revised by the American Rescue Plan (Rescue Plan) signed by President Biden on March 11, 2021.
The information provided in the guide below is highly abbreviated as there are thousands of pages of statutes, regulations, and other materials related to the PPP and ERC. Thus, the information should not be relied upon as accounting, tax, or legal advice. Before acting, please consult an advisor about your specific situation.
A Guide to the 2021 Paycheck Protection Program and Employee Retention Credit