What is the Employee Retention Credit (ERC)?
The Employee Retention Credit (ERC) is a payroll tax refund established by the same COVID relief bill as PPP. It encouraged businesses to keep employees on payroll during the pandemic. Your business can receive ERC (up to $26,000 per W-2 employee), even if you received PPP funds. Our CPAs take the time to thoroughly review each client's documents and provide personalized tax guidance. Our ERC specialists have a successful track record of helping clients claim millions in ERC tax credits. Our ERC specialists are dedicated to providing the highest level of service and support. Additionally, we offer audit representation, which can provide peace of mind during the ERC filing process.
Established by the CARES Act, the Employee Retention Credit (ERC) is a payroll tax refund, not a loan. Our ERC specialists are ERC experts.
Does Your Business Qualify for ERC?
If your business retained employees throughout the pandemic closures, you may be eligible for an ERC payroll tax refund of up to $26,000 per W-2 employee!
Your business may qualify for a big ERC refund! Contact our ERC specialists today for your complimentary ERC refund estimate.
Below you will find answers to some frequently asked questions about the Employee Retention Credit (ERC).
The CARES Act of 2020 initially introduced the ERC credit program, which was further enhanced in the Taxpayer Certainty and Disaster Tax Relief Act of 2020, effective from December 27, 2020. The amendment extended ERC availability till 2021, amplified the credit available to employers, and relaxed eligibility criteria. An essential provision of the law permits companies to retroactively leverage the 2020 ERC, even if they received PPP.
Learn more about how ERC works.
Prepare the following documents to expedite your ERC application process: Income Statements / Gross Receipts Support* Annual Payroll Detail* PPP Forgiveness Applications, if applicable, Form 941, Business Tax Returns
Learn more by visiting our ERC Document Checklist.
ERC is accessible to both for-profit and nonprofit employers that pay W-2 wages. To be eligible, a company must satisfy either of the following conditions:
- A partial or complete shutdown by the government (the ERC is only available for wages paid during the shutdown).
A decrease in revenue:
For 2020, a 50% decline in revenue in a quarter compared to the corresponding quarter in 2019.
- For 2021, a 20% decline in revenue in a quarter compared to the corresponding quarter in 2019. Alternatively, in 2021, eligibility can be established based on the previous quarter's 20% decrease in revenue relative to its corresponding quarter in 2019.
- Recovery Start-up Business: A business that commenced after February 15, 2020, automatically qualifies for Q3 and Q4 of 2021, provided the new business's gross receipts from the new or any other old business do not surpass an average of $1,000,000 over the past three years.
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