I have many clients wanting to get SBA loans and are asking my advice on whether to get the Economic Injury disaster loan v/s the new Paycheck Protection Program under Sec 1102 of the CARES Act. I also see that many of my clients would greatly benefit from the Employee retention credit under Sec 2301; but if they get the loan forgiveness with the loan under the Paycheck Protection Program they will not be able to take the Employee Retention credit. So I am trying to figure out what advice to give there by looking at how much of the loan would most likely be forgiven v/s how much they would likely benefit from the Employee Retention credit. But there is one part I don't understand, when it says limited to 10k per employee does that mean per quarter or for the whole year? Like does it mean 10k per employee per year or 10k per employee per quarter? This is the part I'm talking about:
SEC. 2301. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID–19.
(a) In General.—In the case of an eligible employer, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to 50 percent of the qualified wages with respect to each employee of such employer for such calendar quarter.
(b) Limitations And Refundability.—
(1) WAGES TAKEN INTO ACCOUNT.—The amount of qualified wages with respect to any employee which may be taken into account under subsection (a) by the eligible employer for all calendar quarters shall not exceed $10,000.
(2) CREDIT LIMITED TO EMPLOYMENT TAXES.—The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the applicable employment taxes (reduced by any credits allowed under subsections (e) and (f) of section 3111 of the Internal Revenue Code of 1986 and sections 7001 and 7003 of the Families First Coronavirus Response Act) on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter.