Additional guidance to employers for second half of 2021

The Treasury Department and the IRS issued further guidance on the Employee Retention Credit, including guidance for employers who pay qualified wages after June 30, 2021, and before January 1, 2022, and additional guidance on miscellaneous issues that apply to the credit in both 2020 and 2021. These changes, made under the American Rescue plan, amplify prior guidance.

The guidance also responds to questions received and covers reporting qualified wages and related health insurance costs.

Gross receipts safe harbor for employers claiming the credit

The Department of the Treasury and the IRS issued a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining eligibility for the Employee Retention Credit.