In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act’s employee retention credit in just 12 days with no contemporary legislative history. The IRS has not and will not issue formal regulatory guidance, leaving some gray areas and many unanswered questions for taxpayers. The initial confusion surrounding eligibility for the employee retention credit was further exacerbated by subsequent legislative changes to the CARES Act, resulting in an eligibility matrix for employers to navigate with little guidance.
Understanding the details of the legislation is challenging—it can be complex, ambiguous, and almost contradictory. Navigating and interpreting these intricacies is necessary to determine eligibility and calculate an accurate ERC. As you read the highlights of the legislative updates since March 2020 below, it is easy to see why there are so many misconceptions.
So how do employers determine whether they are eligible for the ERC? Through my experience working with clients, I have identified six of the most common misconceptions that I hear regarding eligibility for the ERC.
1. Revenue declines are a requirement.
The assumption that...
The Department of Home Affairs has rejected false claims circulating online that a Constitutional Court judgment means asylum seekers will be allowed to vote in South Africa. The department says t...