Employee Retention Credit

3 Months Ended

Mar. 31, 2021

Employee Retention Credit

Employee Retention Credit

10.           Employee Retention Credit

The employee retention credit (ERC) for 2020 was established under the CARES Act and amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Relief Act”) and provided for changes in the employee retention credit for 2020 and provided an additional credit for the first and second calendar quarters of 2021.

The Company evaluated its eligibility for the employee retention credit for the first quarter of 2021.  In order to qualify for the ERC in the first quarter of 2021, the Company needed to experience a 20% reduction in gross receipts from either (1) the same quarter in 2019 or (2) the immediate preceding quarter to the corresponding calendar quarter in 2019.  It was determined that the Company qualified for the employee retention credit under both scenarios for March 31, 2021.  As a result, as of March 31, 2021 approximately $1,730,000 was recognized in other income for the employee retention credit.