The Paycheck Protection Program (PPP) gold rush is winding down now. Some are winners - they got the money! Others are losers - their bank failed them, or they just got passed over and they didn't get the money.

 

Don't fret! The losers may be the big winners. Another program in the Coronavirus Aid, Relief, and Economic Security Act (CARES) doesn't have the flash and glitz of the PPP, but it is a "Steady Eddie" and will produce nearly as much or even more money to help a small business.

 

The Employee Retention Credits in the CARES Act allows an employer to get up to 50% of the wages paid to employees in credits that will be used to offset employment taxes. This program will continue through the end of the year, and the employer can claim credits up to $5,000 per employee.For example, if an employer has a half time employee making $10/hour, the employee retention credits will yield $1,000 more for the employer than the PPP would have done. It's something the public and press aren't talking about, because the PPP has taken all of the air out of the room, but employee retention credits are powerful. Check out my video that explains it in more detail.

 

 

PS Our CERT course at https://legalees.com/product/cert-covid-19-economic-relief-tutorial/ includes a spreadsheet that lets you calculate whether the PPP is best or the employee tax credits are best for your particular business.