The act codifies the employee retention credit in new Sec. 3134 and extends it through the end of 2021. The employee retention credit was originally enacted in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, and it allows eligible employers to claim a credit for paying qualified wages to employees.
We are now finishing up the form 7200 for Q1, and have begun working on the amended Q4 form 941s for 2020. Just to recap: We claim the 2020 ERTC on the Q4 form 941 (941-X), and claim the 2021 ERTC on form 7200 each quarter before the 941 is filed. We are finalizing the development of a calculator spreadsheet we will use to make sure we do not “double-dip,” and use the same wages for both the PPP and ERTC calculations. This process can get a bit complicated, depending on the number of employees and a variety of other factors.