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OTHER GOVERNMENT PROGRAMS GO VERNMENT PROGR AM
EMPLOYEE RETENTION CREDIT
WHAT?
The Employee Retention Credit under the CARES Act encourages businesses to keep employees on
their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer
whose business has been financially impacted by COVID-19.
H&K COMMENTARY + ZAZA INTERPRETATION:
Interpretation is that, unlike PPP, the credit must be claimed by the entity filing the 941’s Zaza
Hospitality LLC, not the hotel entities. Because ZH LLC did not suffer any revenue loss, we don’t have
an opportunity to take advantage of ER. Same applies to other H&K clients that use a structure
similar to ours.
HO TEL ZAZA + ZAZA HO SPIT ALITY | 20 21 MARCH YTD 29
