In USA, the government had announced employee retention tax credit in case there is a reduction in revenue of the US company during the covid period which start from April 1, 2020.
The credit is available against payroll taxes if the company qualifies for 2020 and 2021. See the links below and follow the flow chart to see if US Company would qualify based on 50% reduction in gross receipts for any quarter in 2020 vs 2019. For 2021 the decline is 20%
The credit is per employee basis so will need each employees wages for the 3 quarters. The maximum wages per employee for the year for this credit is capped at $10,000 and the maximum credit per employee is 50% of the wages so a max of $5,000 per employee.
The credit is claimed on the quarterly payroll tax returns (Form 941) by reducing the employer’s share of social security and medicare taxes.
Companies who had availed PPP loan during covid lockdown cannot claim credit
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