Congress Recently passed a $1.9 trillion stimulus package in 2021 to aid businesses and consumers. This includes a powerful payroll credit called the Employee Rentention Credit Program.
The ERTC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs paid to employees. The tax credit can be as high as $10,000 per employee in 2020 and as high as $21,000 per employee in 2021. The purpose of the ERC is to encourage employers to keep employees on payroll, even if they are not working during the covered period due to the effects of the corona virus pandemic. You may qualify for the ERC if your business:
  • Has 500 of fewer employees.
  • Was at least partly closed due to government orders and shutdowns OR the business revenue declined by 20% or more for any quarter in 2020 or 2021, compared to 2019.
  • You kept employees on the payroll.
You may be eligible for 2021 employee retention tax credits of up to $21,000 per employee.  And the longer you keep your employees on payroll, the more benefits you are eligible to receive back from the IRS.  For 2021, the employee retention credit (ERC) is a quarterly tax credit against the employer’s share of payroll taxes.  The credit is 70% of the first $10,000 in wages per employee in each quarter of 2021.  That means this credit is worth up to $7000 per quarter and up to $21,000 per year, for each employee.  If the amount of the tax credit for an employee is more than the amount of the employers’ share of those payroll taxes owed for a given quarter, the excess is refunded and paid directly to them.

Qualifying is Simple!

Did Covid 19 impact your business in the following ways:
  • Less Hours Open
  • Less Labor
  • Less Clients
  • Partial or Full Business Shutdown
Were you in business in 2020 and 2021? W-2 Employees in 2020 and 2021, Over 5? Did you receive any PPP Loans? (Round 1 or 2)

If so, you may qualify for the ERC!

Let us help you compile and files all the required paperwork.  Contact us right away to get started.

You can still qualify for an ERC refund check, even if you had a PPP or PPP-2 loan. While the CARES Act originally prohibited having both ERC and a PPP Loan, the Stimulus legislation passed (Consolidated Appropriation’s Act of 2021) eliminated the prohibition retroactive to March 13, 2020. Thus, your business can now have a PPP Loan and the ERC refund.  However special calculations around the payroll wages may be required.  We provided these calculations and all required schedules as part of a professional engagement.

There is not a necessity for a 25% reduction in revenue like PPP-2 if you can demonstrate a partial interruption in business operations. There are many ways businesses fully or partially suspended operations during each calendar quarter, and we can help you document qualifying partial suspensions as part an engagement. This included, for example, capacity restrictions on indoor dining, cancelled trade shows and group meetings, and other interruptions that are non/nominal in nature. If your business had to change operations due to governmental orders or if your gross receipts declined by 20%, your business likely qualifies.

Our experts usually take 1-2 weeks to process your payroll, reconcile any PPP covered period overlap, and build out the attribution schedules.  We will electronically file your forms with the IRS who on average is taking approximately 8-12 weeks to process your tax credit and send you a check.