ERTC and SCorp owner

[Pamela Mora]

Can a 100% S Corp owner with no employees qualify for the credit?.  I thought I read somewhere that related parties don’t qualify

[Lynn Freer]

It doesn’t qualify for owners

[Mary Cheek]

Can you give me a reference to where it says that?  i have not seen that.

[Mary Cheek]

under faq#48, it says,” For an Eligible Employer that averaged 100 or fewer full-time employees in 2019, qualified wages are the wages paid to any employee during any period in the calendar quarter in which the business operations are fully or partially suspended due to a governmental order or any calendar quarter the business is experiencing a significant decline in gross receipts.”

This sounds like scorp owner/employee wages would be allowable.

[Lynn Freer]

<span class=”fontstyle0″>Wages paid to related individuals, as defined by IRC §51(i)(1), are not taken into account for
purposes of the Employee Retention Credit. (FAQ #59)</span>  A related individual includes the corporate owner of more than 50% of the stock either directly or indirectly

[Lynn Freer]

Actually I was just told that there are differing opinions on this issue. We’ll report on it via a a podcast and/or a flash email. If you aren’t signed up for them, go to caltax.com

[Pamela Mora]

Hi Lynn, not to rush you but any update yet?   I would love to finish up the payroll tax returns that may qualify.  I scoured the internet and can’t seem to find an answer.

[Lynn Freer]

No I haven’t and it may be we’ll have to wait for guidance

[Author]

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