Can You Get the ERTC and PPP Loan?

Yes, it is possible to receive both the Employee Retention Tax Credit (ERTC) and the Paycheck Protection Program (PPP) loan, but there are some important considerations and limitations to keep in mind[4]:

• Overlapping Periods: The key factor is that the wages used for PPP loan forgiveness cannot be used for calculating the ERTC. In other words, there cannot be an overlap in the wages claimed for both programs[4].
• Qualified Expenses: PPP funds are primarily intended to cover payroll costs, while the ERTC can be used to cover a broader range of qualified wages and health plan expenses[4].
• Eligibility Criteria: The eligibility criteria for the ERTC and PPP are different. While the ERTC focuses on a decline in gross receipts or a suspension of operations, the PPP loan eligibility is primarily based on maintaining payroll and employee headcount[4].
• Retroactive Claims: It's important to note that the ERTC can be claimed retroactively for qualified wages paid in 2020 and 2021, even if the employer received a PPP loan during that period5. This means that businesses that initially chose to apply for PPP loans can still explore the possibility of claiming the ERTC for eligible periods.

It's crucial to consult with tax professionals and review the latest IRS guidance to understand the specific rules and limitations that apply to your situation. Each business's circumstances may vary, and professional advice can help navigate the complexities of claiming both the ERTC and PPP loan benefits.

In conclusion, while it is possible to receive both the Employee Retention Tax Credit (ERTC) and the Paycheck Protection Program (PPP) loan, there are limitations and considerations to keep in mind. 

Understanding the eligibility criteria, qualified expenses, and potential overlap in wage calculations is essential. Consulting with tax professionals can provide guidance tailored to your specific circumstances and help maximize the benefits of both programs.