TRENDS
Making the Most of the ERTC The ERTC provisions of the CARES Act provide significant economics for employers who are ineligible or unable to participate in the PPP.
As Congress struggled with trying to help an economy hit by COVID-19, it
a lot of press because the PPP has been
passed a few bills hoping to help businesses and individuals. One of these, the CARES
under intense scrutiny as a result of the
Act, was passed in March and had several provisions intended to help employers keep
forgivable nature of the loans and limited
their employees on payroll.
availability of funds.
The most familiar provision was the Paycheck Protection Program (PPP) – a forgiv-
30
The ERTC, however, is good news
able loan available for small businesses with less than 500 employees. The Employee
for a lot of organizations in healthcare
Retention Tax Credit (ERTC) provisions of the CARES Act provide significant
industry – even the single-hospital and ru-
economics for employers who are ineligible or unable to participate in the PPP. If this
ral health systems – which were too large
is all new information to you, don’t worry – you aren’t alone. The ERTC hasn’t gotten
of an employer to qualify for a PPP loan.
October 2020 | The Journal of Healthcare Contracting
