Has your association been impacted financially by the City of Chicago or State of Illinois orders limiting commerce, travel or group meetings? The Federal government has enacted legislation to make financial aid available (in the form of Payroll Tax refunds) to organizations that have suffered financially as a result of the partial suspension of the operation of their trade or business. The financial aid is being made available to organizations that did not layoff employees during the midst of the government ordered shutdowns despite suffering revenue losses during 2020 and 2021.
The Employee Retention Credit is a refundable tax credit (made available under the CARES Act of 2020) against certain employment taxes equal to 50% of the first $10,000 of wages an eligible employer pays to employees after March 12, 2020 and before December 31, 2020. That translates into a credit of $5,000 for each retained employee that your organization retained despite suffering revenue losses. The Employee Retention Credit was expanded under the Taxpayer Certainty and Disaster Relief Act of 2020 and the America Rescue Plan of 2021 to 70% of the first $14,000 of wages paid in throughout all of 2021. That translates into an additional credit of $10,000 for each retained employee for 2021, if you have suffered additional revenue losses due to the Illinois and Chicago ordered shutdowns.
Have you been unable to rent your party rooms, event spaces, or hotel spaces in your association? Your building may be eligible for this financial aid. Check with your management company or the Certified Public Accounting firm that audits your association.