What is the Employee Retention Credit (ERC)?

While the map mentioned above is admittedly a metaphor to catch your attention, rest assured the treasure is very real.

 

ERC is a stimulus program put in place by the Federal Government designed to help those businesses that were able to retain their employees during the Covid-19 pandemic.

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Established by the CARES Act, it is a refundable tax credit – that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees that offers:

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• Up to $26,000 per employee

• Available for 2020 and the first 3 quarters of 2021

• Qualify with decreased revenue or COVID event

• No limit on funding

• ERC is a REFUNDABLE Tax Credit

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How much money can I get Back?

You can claim up to $5,000 per employee for 2020. For 2021, the credit can be up to $7,000 per employee per quarter.

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How do you know if your business is eligible?

That is the greatest part of this whole thing, we have the experts who know how to claim the benefits your business is entitled to. All you have to do is make the first call and share some basic information about your business operations and our team takes care of the rest!

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We help businesses with a legitimate need claim their benefits based on the following parameters of the program:

• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.

• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.

• A business can be eligible for one quarter and not another.

• Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs. The ERC, though, cannot apply to the same wages as the ones for PPP.

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What do I need help for?

Our Professional Services include the following to take all the headaches out of claiming your $26,000 per employee:

• Thorough evaluation regarding your eligibility

• Comprehensive analysis of your claim

• Guidance on the claiming process and documentation

• Specific program expertise that a regular CPA or payroll processor might not be well-versed in

• Fast and smooth end-to-end process, from eligibility to claiming and receiving refunds

• Expert advice on how the PPP loans factor into ERC

• What the differences are between the 2020 and 2021 programs and how they apply to your business

• What the aggregation rules are for larger, multi-state employers, and how to interpret multiple states' executive orders

• How part-time, union, and tipped employees affect the amount of your refunds

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Say no more, how do I get my fair share?

It really couldn't be any simpler, you just need to click the button below to get in contact with our team of Professionals.