Looking for a CPA to file your Employee Retention Tax Credit (ERC)?
Learn more about the Employee Retention Credit and find out if your company qualifies for a ERC refund.
What is the Employee Retention Tax Credit (ERC)?
The Employee Retention Credit (ERC) is a payroll tax refund born out of the same COVID relief bill as PPP which incentivized businesses who kept employees on payroll during the pandemic. Your business can claim ERC (up to $26,000 per W-2 Employee) even if you received PPP funds. That’s great news for your business!
The Employee Retention Credit (ERC) presents a significant opportunity for relief to businesses affected by the COVID-19 pandemic, with the potential for up to $26,000 per employee during the years 2020 and 2021. Eligibility for the ERC can be determined by actual closures, restrictions imposed by government orders, or by demonstrating a reduction in gross receipts of 50% or a 20% decline in gross receipts for specific quarters in 2020 and 2021, compared to the same quarters in 2019. It is important to note that the ERC can still be accessed even if a business has already received PPP loans, and newly established businesses after February 2020 may qualify for up to $100,000 in refundable credits in 2021 under specific ERC provisions.
Established by the CARES Act, the Employee Retention Credit (ERC) is a refundable tax credit, not a loan.
Is Your Business Eligible for ERC?
If you retained employees throughout the COVID-19 pandemic shutdowns, your business could be eligible for a tax refund of up to $26k per W-2 employee.
Most businesses qualify for the ERC refund, even if your CPA suggests that you do not.
DOES MY BUSINESS QUALIFY FOR ERC?
ERC Tax Credit Qualifications
Receive up to $26,000 per W-2 employee! You have to meet one of the following to qualify:
50% decrease in gross revenue in 2020
In any quarter 2-4 compared to the corresponding quarter in 2019. (For example Q2 of 2020 would compare to Q2 of 2019)
20% decrease in gross revenue in 2021
In Quarters 1-3 compared to the corresponding quarter in 2019. (For example Q1 of 2021 would compare to Q1 of 2019)
Recovery startup credit
Formed business after Feb 15 2020 and have non officer or family member employees in Q3 and/or Q4 of 2021. Must have under 1 million gross revenue in 2020 and 2021.
Supply chain disruption
An employer may be able to claim a full or partial suspension of operations due to a governmental order that affects its supplier, but only if certain criteria are met. These criteria include the supplier's ability to deliver critical goods as a result of a governmental order, the employer's ability to obtain critical goods from another supplier, and the impact on the business if it cannot obtain these critical goods. It's important to note that all three of these factors must be present for an employer to claim a suspension.
Contact our ERC specialist today if you have any questions!