{"id":"AGY-TERRITORIES-105","kind":"order","level":"federal","jurisdiction":"United States - Internal Revenue Service (eligibility authority for territorial employers)","state":"","metro":"","industry":"","agency":"TERRITORIES","eco":"","issuer":"Internal Revenue Service","authority":"","instrument":"Notice 2021-20, Question and Answer 4","title":"Guidance on the Employee Retention Credit under Section 2301 of the CARES Act: Q\u0026A-4, Are employers in U.S. Territories eligible for the employee retention credit?","dateIssued":"2021-03-01","effective":"guidance for wages paid after March 12, 2020 and before January 1, 2021","end":"--","startDate":"2020-03-12","endDate":"","quarters":[],"types":["OTHER"],"addressees":["employers in Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa and the CNMI"],"clause":"Question 4: Are employers in U.S. Territories eligible for the employee retention credit? Answer 4: Yes. If an employer in a U.S. Territory otherwise qualifies for the employee retention credit then the employer is entitled to claim the credit. Section 2301(c)(5)(A) of the CARES Act provides that qualified wages are, in general, wages as defined in section 3121(a) of the Code for purposes of the Federal Insurance Contributions Act (FICA) tax. Payments of wages by employers in U.S. Territories are wages within the meaning of section 3121(a). Accordingly, eligible employers include employers in the U.S. Territories that pay qualified wages and otherwise meet the requirements for the credit.","enforcement":"the Service is bound by its published guidance to the same extent as a revenue ruling (IRM 32.2.2.10(3)-(4))","functions":["eligibility of every territorial employer"],"notes":"The Service\u0027s own words confirm territorial eligibility; Notice 2021-23 and 2021-49 carry the 2021 quarters forward on the same wage definition (I.R.C. sec. 3134(c)(3)(A))","sourceUrl":"https://www.irs.gov/pub/irs-drop/n-21-20.pdf","snapshot":"","fileExists":true,"fileBytes":487938,"grade":"primary","character":"","description":"","collection":"AGY-TERRITORIES","url":"/library/AGY-TERRITORIES-105","exhibitUrl":"/exhibit/AGY-TERRITORIES-105","citation":"Internal Revenue Service, Notice 2021-20, Question and Answer 4 (Mar. 1, 2021) (Ex. AGY-TERRITORIES-105)","stateName":"","related":[]}