Notice 2021-20, Question and Answer 4

The record

Jurisdiction

United States - Internal Revenue Service (eligibility authority for territorial employers)

Level

Federal

Issued

2021-03-01 Mar. 1, 2021

Effective

guidance for wages paid after March 12, 2020 and before January 1, 2021 (read as 2020-03-12)

End

--

In force

Mar. 12, 2020 (no end date recorded; counted as in force for 120 days)

Limitation types

Other

Addressees

• employers in Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa and the CNMI

Functions reached

• eligibility of every territorial employer

Collection

Territorial governments AGY-TERRITORIES

Operative words

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

Notes