Are An Employer’s Operations Considered To Be Partially Suspended For Purposes Of The Employee Retention Credit If The Employer Is Required To Reduce Its Operating Hours By A Governmental Order? – #19 ERC IRS Notice 2021-20

Question #19:
Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order?

Found under the D. Full or Partial Suspension of Trade or Business Operations section of the Employee Retention Credit (ERC) IRS Notice 2021-20 with updated guidance to help business owners follow the current ERC rules. 

The answer to question #19, Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order?, can be found below.

ERC IRS Notice 2021-20 Question #19:

D. Full or Partial Suspension of Trade or Business Operations

Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order?

Yes. An employer that reduces its operating hours due to governmental order is considered to have partially suspended its operations since the employer’s operations have been limited by a governmental order.

Example: Employer K operates a food processing facility that normally operates24 hours a day. A governmental order issued by the local health department requires all food processing businesses to deep clean their workplaces once every 24 hours in order to reduce the risk of COVID-19 exposure. In order to comply with the governmental order, Employer K reduces its daily operating hours by five hours per day so that a deep cleaning may be conducted within its workplace once every 24 hours. Employer K is considered to have partially suspended its operations due to the governmental order requiring it to reduce its hours of operation.

For more information about the Employee Retention Credit (ERC) IRS Notice 2021-20, visit the Internal Revenue Service (IRS) Department of the Treasury, official IRS.gov tax website.

Conclusion and Summary on Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order? – #19 ERC IRS Notice 2021-20

The answer to Question #19: “Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order?” was answered in detail above. It was found under section “D. Full or Partial Suspension of Trade or Business Operations” in IRS Notice 2021-20. 

Leave a comment below if you have further questions on the Employee Retention Credit (ERC) or for clarifications on Are an employer’s operations considered to be partially suspended for purposes of the employee retention credit if the employer is required to reduce its operating hours by a governmental order?

Employee Retention Tax Credit (ERTC): Expert Assistance to Claim Your Business ERC Credit 

Up to a $26,000 ERC Refund from the IRS for Each Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 9419-X, and the Employee Retention Tax Credit (ERTC) program. 

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 20219.

The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 195% to 35% of your ERC refund!

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If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you. 

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

Cover Image Credit: Irs.gov / IRS Notice 2021-20 / Disaster Loan Advisors.

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