Guidance on Employee Retention Credit for 2020

The IRS issued guidance for employers claiming the employee retention credit under the CARES Act, as modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), for calendar quarters in 2020.

This guidance applies to qualified wages paid after March 12, 2020, and before January 1, 2021 and includes clarifications and describes retroactive changes applicable to 2020, primarily relating to expanded eligibility for the credit.

The IRS plans to release additional guidance soon addressing changes for 2021.