Employee Retention Tax Credit (ERTC): Overview

Download the Employee Retention Tax Credit Policy Brief

Eligible restaurants can access ERTC 2020 and 2021 for eligible employee wages as long as these specific payroll wages and/or group benefits were not directly paid with Paycheck Protection Program (PPP) loan funds. Employers can access up to $5,000 per employee per calendar quarter in 2020, and up to $7,000 per employee for January 1 – March 31, 2021 and April 1 – June 30, 2021.

Eligibility

The following criteria define eligible employers and circumstances for ERTC eligibility. Download the ERTC Policy Brief for complete details.

  • Eligible Employers: Employers of 100 or less full-time employees can access ERTC for on-premises, working employees in 2020 and employers of 500 or less full-time employees can access ERTC for on-premises, working employees in 2021. The employer status is calculated by counting the average number of full-time employees employed during 2019.
  • Eligible Circumstances: 1. Operations either fully or partially suspended due to orders from a governmental authority due to COVID-19, or; 2. The business experienced a significant decline in gross receipts when comparing either the calendar quarter or the prior quarter to the corresponding quarter in 2019.