Employee Retention Credit
CARES Act ERC Has Recently Extended Until December 31, 2021 and is Worth up to $26,000 per Employee
Let us show you why this Employee Retention Credit (ERC) is important to your business?
These are refundable payroll tax credits that could potentially give you thousands, even millions of dollars in tax credits. You may be eligible to receive a tax credit of up to $26,000 per employee.
In late December of 2020, Congress revised refundable credits for businesses that needed to retain employees. This is one of the many relief options available to businesses affected by the pandemic, including refundable credits for retaining employees in both 2020 and 2021. This CARES Act Employee Retention Credit (ERC) expansion creates opportunities for previously excluded recipients of PPP.
Very recently, in March 2021, the government extended the credits for another six months making employers eligible through December 31, 2021.
In order to be eligible, your business must have been fully or partially suspended by government orders OR experienced a reduction in year-over-year gross recipients of 50% in 2020 or 20% in 2021.
Hear from our CEO how we saved millions with the Employee Retention Credit
Did you take a PPP loan already? Not to worry.
The ERC is retroactive to the effective date included in the CARES Act, the 2020 provision:
Employers who received Paycheck Protection Program (PPP) loans may still qualify for the ERC with respect to wages that are not paid for with PPP proceeds.
Specifies the amount of gross receipts for certain tax-exempt organizations
Specifies that group health-plan expenses can be considered qualified wages despite no other wages having been paid to the employee, consistent with IRS guidance.
Most Common Misconceptions Regarding the Employee Retention Credit
1. We are considered an essential business and do not qualify.
False. An essential business can qualify for the ERC because gross receipts declined by 20% year-over-year or because its operations are fully or partially suspended because of a government order.
2. We took the PPP and do not qualify.
False. The stimulus package passed in December 2020 has always allowed for companies who received PPP funds to also take the ERC!
3. Our business stayed open the whole time and does not qualify.
False. Your company most likely had to perform extra cleaning or sanitizing, installing/utilizing protective equipment, temperature checks, a change in job roles/functions, and more. If your business had to change operations in any way due to governmental orders OR if gross receipts declined by 20% year-over-year, your business qualifies.
4. Because our company didn't experience a year-over-year decline in sales by 20%, we do not qualify.
False. Your company had to see either a 20% decline in gross receipts OR suspension in operations, not both. Almost every business has been impacted in some way by a national, state, or local governmental order, therefore qualifying the business.
5. We have been profitable through the Pandemic and therefore do not qualify.
False. Even if you have been profitable, we have helped many companies that were profitable in 2020 receive anywhere from thousands to millions of dollars in credits. This includes grocers, manufacturing, logistics companies, and more. If your business has been impacted in some way by the pandemic, you qualify.
6. We do not pay taxes because we are a nonprofit, and do not qualify.
False. Due to recently modified rules, this tax credit applies to tax-exempt organizations if the business operations have been fully or partially suspended due to governmental orders related to COVID-19. Many nonprofit daycares, schools, daycares, counseling centers, ministries, churches, and clubs closed their buildings and/or partially suspended services to comply with government orders and guidelines. This suspension of operations would qualify that organization for the ERC.
Quickly discover your tax credit savings, today!
Complete the form below to book your free consultation with a tax credit expert.
What we will discuss:
- Specify your qualification based on full/partial suspension OR gross receipts test.
- Specify your eligibility as an essential business even if your company didn't experience a decrease in revenue.
- Specify credit availability, research, prepare and deliver an audit-ready package, and Look for other credit opportunities to maximize incentives.