This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Employee Retention Credit (ERC) Provides Benefits for Manufacturing Employers ” by Jim Estrella, CPA, MSA.
For manufacturers who experienced a suspension in operations or decline in business compared to 2019 due to the COVID-19 crisis, the Employee Retention Credit (ERC) may be a welcome relief. Under the CARES Act, the ERC offers a significant credit back for qualified wages, just for keeping employees on the payroll. This and other government relief programs have helped manufacturers survive this economic downturn with many facilities closed due to government orders.
Eligible manufacturers must meet one of the following criteria:
- Have operations fully or partially suspended;
• If government authorities impose restrictions on operations limiting commerce, travel, or group meetings;
• Can include facilities with multiple locations with varying closure guidelines.
- Experience a significant decline in gross receipts during a calendar quarter;
• If an employer’s gross receipts are less than 50% of its gross receipts for the same calendar quarter in 2019;
• Gross receipts include any income from investments and incidental or outside sources.
The credit is available to all employers regardless of size… Continue here »
Learn more about the Employee Retention Credit (ERC) »
Learn more about KROST’s Manufacturing Industry Services »
KROST Quarterly is a digital publication that highlights some of the hot topics in the accounting and finance industry. Volume 3, Issue 2 highlights some of the hot topics in manufacturing, including accounting for PPP, transfer pricing, Foreign-Derived Intangible Income (FDII), R&D tax credits, and more.
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