Yeet Inc. has 14 employees in 2020. Yeet’s 2020 second quarter business was 70 percent lower than 2019 due to COVID-related impacts. Yeet was able to stay in business and kept ten of the fourteen employees working and paid each of them $8,000 in the quarter. In a effort to show solidarity, Yeet paid the four nonworking employees the same amount also. Yeet did not take a PPP loan. Yeet will take an employee retention credit for: a.70 percent of the wages paid to all fourteen employees. b.50 percent of the wages paid to all fourteen employees, whether working or not. c.100 percent of the wages paid to the four nonworking employees. d.50 percent of the wages paid to the four nonworking employees. e.70 percent of the ten working employees.

Individual Income Taxes
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ISBN:9780357109731
Author:Hoffman
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Chapter7: Deductions And Losses: Certain Business Expenses And Losses
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The FICA Tax (LO 9.3)

(COVID provisions) Yeet Inc. has 14 employees in 2020. Yeet’s 2020 second quarter business was 70 percent lower than 2019 due to COVID-related impacts. Yeet was able to stay in business and kept ten of the fourteen employees working and paid each of them $8,000 in the quarter. In a effort to show solidarity, Yeet paid the four nonworking employees the same amount also. Yeet did not take a PPP loan. Yeet will take an employee retention credit for:

a.70 percent of the wages paid to all fourteen employees.
b.50 percent of the wages paid to all fourteen employees, whether working or not.
c.100 percent of the wages paid to the four nonworking employees.
d.50 percent of the wages paid to the four nonworking employees.
e.70 percent of the ten working employees.
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