Puerto Rico begins disbursing retention aid to employers affected by 2020 disasters
Puerto Rico Gov. Jenniffer González-Colón and Treasury Secretary Ángel Pantoja-Rodríguez have announced the disbursement of the first round of payments under the Employee Retention Benefit program, totaling more than $1 million. The initiative supports employers affected by disasters in 2020 who retained and continued to pay their employees despite operational disruptions.
“We are proud to announce that 162 applications have been processed for eligible employers who faced significant challenges due to the natural disasters of 2020,” González-Colón said. “This benefit acknowledges the empathy and commitment shown by these businesses in continuing to pay their workforce during those difficult times.”
According to the Treasury Department, the majority of the approved applications were related to damage caused by the 2020 earthquakes. The funds will support salary payments for approximately 800 employees. The program, established under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, will remain open for applications until Dec. 1, allowing additional employers time to apply.
The benefit covers several disaster events, including the 2019 – 2020 earthquakes, Tropical Storm Isaias, and flooding in Arecibo, and is available to employers in 34 affected municipalities.
Pantoja-Rodríguez explained that the Treasury identified about 10,500 potentially eligible employers based on Federal Emergency Management Agency-designated disaster areas. Qualified businesses had to be registered merchants with sales and use tax accounts and wage withholding accounts, and must have filed W-2s and related returns.
The benefit amount depends on the employer’s net taxable income for 2020: Employers with net income over $10 million may receive up to $6,000, or $1,560 per eligible employee. Employers with $10 million or less in net income may receive up to $6,000, or $1,920 per eligible employee.
Employers must apply electronically through the SURI platform. Once logged in, they should log in to their income tax account, go to the “Forms, Periods and Other Options” section, and select the “Employee Retention Benefit – Qualified Disasters 2020 (ERTC)” to submit the necessary documentation.
Pantoja-Rodríguez confirmed that the Treasury Department will continue to process applications on a recurring basis throughout the eligibility period.
