What You Need To Know
Employee Retention Credit for Employers Affected by Qualified Disasters
With the passing and signing of HR 133 in December 2020, WOTC and several other tax credits were extended. One of the credits was the Employee Retention Credit for Employers Affected by Qualified Disasters.*
Similar to previous disaster credits, this credit is worth 40% of qualified wages paid to each employee (max credit $2,400 per employee) during a period of time in which the business location (which must be in a designated disaster zone) was inoperable due to a qualified disaster in 2020.
*Not to be confused with the Employee Retention Credit for Employers Subject to Closure Due to COVID-19 from CARES Act.
How much is the credit?
40%
of qualified wages paid to each employee (max credit $2,400 per employee)
What is a qualified disaster area?
An area where a major disaster is declared by the
President of the United States
How many disasters qualify?
20 disasters
occurred in 2020 that were designated as qualified federal disasters
Inoperable could include, but is not limited to:
- Reduced sales or customer visits
- Limited/no access to utilities to operate
- Reduced production or employee attendance
- Supply chain delays in disaster zone areas
Qualified Disaster Areas in 2020
Click on a highlighted area of the map to view more information specific to that disaster zone.
Alabama
| County | Qualified Credit |
|---|---|
|
Alabama Hurricane Sally |
|
Alabama Hurricane Zeta |
California
| County | Qualified Credit |
|---|---|
|
California Wildfires |
|
California Wildfires |
Oregon
| County | Qualified Credit |
|---|---|
|
Oregon Severe Storms, Flooding, Landslides, And Mudslides |
|
Oregon Wildfires And Straight-line Winds |
Iowa
| County | Qualified Credit |
|---|---|
|
Iowa Severe Storms |
Florida
| County | Qualified Credit |
|---|---|
|
Florida Hurricane Sally |
Lousiana
| County | Qualified Credit |
|---|---|
| All Counties |
Louisiana Hurricane Laura |
| All Counties |
Louisiana Hurricane Delta |
|
Louisiana Hurricane Zeta |
Mississippi
| County | Qualified Credit |
|---|---|
|
Mississippi Severe Storms, Tornadoes, Straight-line Winds, And Flooding |
|
Mississippi Hurricane Zeta |
Tennessee
| County | Qualified Credit |
|---|---|
|
Tennessee Severe Storms, Tornadoes, Straight-line Winds, And Flooding |
|
Tennessee Severe Storms, Tornadoes, Straight-line Winds, And Flooding |
South Carolina
| County | Qualified Credit |
|---|---|
|
South Carolina Severe Storms, Tornadoes, And Straight-line Winds |
Puerto Rico
| County | Qualified Credit |
|---|---|
|
Puerto Rico Earthquakes |
|
Puerto Rico Tropical Storm Isaias |
|
Puerto Rico Severe Storm And Flooding |
We're here to help you search and discover if any of your locations are in a qualified disaster zone.
Contact us today to maximize your disaster zone credit.
