On March 2, the IRS issued detailed Employee Retention Credit guidance. While new guidance is similar to the information posted in FAQ's last year, it goes a step further in providing clarity around retroactive changes that apply to 2020, including expanded eligibility for taxpayers who took PPP loans.
Employers who paid qualified wages after March 12, 2020 and before Jan 1, 2021, and who experienced a full or partial suspension of their operations or significant decline in gross receipts may be eligible for the credit. IRS Notice 2021-20 explains in detail when and how employers that received a PPP loan can claim the Employee Retention Credit for 2020.