Treasury and the IRS have issued a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining Employee Retention Credit (ERC) eligibility.
Revenue Procedure 2021-33 provides a safe harbor permitting employers to exclude certain amounts from gross receipts for determining eligibility for the ERC.
An employer elects to apply the safe harbor by excluding these amounts only for determining whether it is an eligible employer for a calendar quarter for purposes of claiming the ERC on its employment tax return.