The Covid-19 pandemic has led to the closure of 34% of the small businesses in the United States in 2020. The US government issued the Coronavirus Aid, Relief, and Economic Security (CARES) act, as there were many business losses during the pandemic. In addition, the CARES Act established the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC). This blog provides an outline of the PPP and ERC. It further evaluates the distinguishing factors between the Paycheck Protection Program and the Employee Retention Credit. And provides a clear line of  difference between PPP and ERC . Know The Paycheck Protection Program  Established in March 2020, the small business administration (SBA) designed the Paycheck Protection Program. The PPP acts as an incentive for small businesses to keep their workers employed during the beginning of the coronavirus pandemic. With the help of this program, the businesses can take out a second loan and the first loan.  You need the following

Several business owners worldwide must have struggled to make ends meet during the coronavirus crisis. Still, a tax credit like the Employee Retention Credit must have come into the picture as it is more easily accessible than several popular relief options such as grants and loans. If you have no idea how tax credits work and want to learn more about available tax credits, use our estimator for employee retention tax calculation . But before that, we need to know more about employee retention credit and its significance for business owners.  Read More : Employee Retention Tax Calculation