keninmichigan wrote:In answer to Nilodop above, my question relates to an "S" corp. with a 100% shareholder and his/her wages. There are no other relatives in the corp. receiving any wages.
Nilodop copied & pasted part of the law, leaving out the part about corps.
ERC is in sec 2301 of the CARES Act
https://www.congress.gov/bill/116th-con ... /748/text/SEC. 2301. <<NOTE: 26 USC 3111 note.>> EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID-19.
(e) Certain Rules to Apply.--For purposes of this section, rules similar to the rules of sections 51(i)(1) and 280C(a) of the Internal Revenue Code of 1986 shall apply.
§51(i)(1)
https://www.law.cornell.edu/uscode/text/26/51(i) Certain individuals ineligible
(1) Related individuals
No wages shall be taken into account under subsection (a) with respect to an individual who—
(A) bears any of the relationships described in subparagraphs (A) through (G) of section 152(d)(2) to the taxpayer, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than 50 percent in value of the outstanding stock of the corporation, or, if the taxpayer is an entity other than a corporation, to any individual who owns, directly or indirectly, more than 50 percent of the capital and profits interests in the entity (determined with the application of section 267(c)),
§152(d)(2)
https://www.law.cornell.edu/uscode/text/26/152(d) Qualifying relative
(2) Relationship
For purposes of paragraph (1)(A), an individual bears a relationship to the taxpayer described in this paragraph if the individual is any of the following with respect to the taxpayer:
(A) A child or a descendant of a child.
(B) A brother, sister, stepbrother, or stepsister.
(C) The father or mother, or an ancestor of either.
(D) A stepfather or stepmother.
(E) A son or daughter of a brother or sister of the taxpayer.
(F) A brother or sister of the father or mother of the taxpayer.
(G) A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.