The IRS has issued a news release regarding launch of the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. A summary of the CARES Act, including the Employee Retention Credit, may be found here
.According to this news release, the IRS and the Treasury Department are interpreting the CARES Act regarding the Employee Retention Credit to mean that the “amount of the credit is 50% of qualifying wages paid up to $10,000 in total” (emphasis added). This appears to contradict the statutory language in the CARES Act, which states that the “amount of qualified wages with respect to any employee which may be taken into account [for purposes of the Employee Retention Credit] by the eligible employer for all calendar quarters shall not exceed $10,000” (emphasis added).
We actively monitoring the situation and will provide updates if they become available. In the meantime, please be aware of this alternative interpretation.
The COVID-19 pandemic and response is an evolving situation. All levels of government are engaged in the process of preparing new legislation, regulations and orders both to stem the spread of the virus and to provide relief to employers and employees. We will continue to monitor the situation and provide updates as applicable, especially as such updates affect healthcare providers and their practices.
For more updates on this topic and other legal updates related to the COVID-19 pandemic, please visit our COVID-19 Legal Resource Page by clicking here.