Employers, including tax-exempt organizations, are eligible for ERC in 2021 if they meet one of the following criteria:
- Full or partial suspension of business operations during 2021 as a result of government order – OR –
- Greater than 20% decline in last quarter of 2020 compared to same quarter in 2019 – OR –
- Gross receipts for calendar quarter in 2021 are less than 80% of gross receipts for same calendar quarter in 2019
Employers that did not exist in 2019 can use the corresponding quarter in 2020 to measure the decline in their gross receipts. In addition, employers may elect to measure the decline in their gross receipts using the immediately preceding calendar quarter (i.e., the fourth calendar quarter of 2020 and first calendar quarter of 2021, respectively) compared to the same calendar quarter in 2019. Refer to pages 6-7 of the 2021 ERC Guidance for detailed information on how to calculate ERC credits based on when your organization was in operation.