More Tax Credits. Less Taxing.
We know you’re busy. So we’ve done the hard work for you and made a few things super clear – so that you can make the most of this lucrative tax credit. Here’s exactly what it is, and how to claim it.
What is the Employee Retention Tax Credit (ERC)?
In the Coronavirus Aid, Relief, and Economic Security (CARES) Act, there is a provision called the Employee Retention Credit (ERC) that provides a refundable payroll tax credit for wages paid to employees retained full-time from March 13, 2020, to September 30, 2021.
The ERC was designed to encourage employers to keep employees on the payroll, even if they were not working during the COVID-19 period.
Are you unsure about the Employee Retention Credit?
Discover the benefits of the ERC for your business
The purpose of this refundable tax credit is to provide relief to businesses, allowing them to retain employees and prevent hardships in the event of disruptions or shutdowns caused by COVID-19.
An employer’s ERC credit is calculated by multiplying its wages paid to employees at the time it applied for the ERC program by the number of employees at that time. Typically, employers who participate in this program receive a cash rebate.
Companies receive the ERC as a relief measure to ensure that their employees remain on their payrolls and to compensate for hardships resulting from COVID-19-related shutdowns or other disruptions.
A credit equal to 50% of the first $10,000 paid to employees in Qualified Wages is available for the two quarters (including March 13 – March 31, 2020) of 2020. For the year 2020, the maximum ERC credit is $5,000 per employee receiving qualified wages.
Quarterly tax credits will be provided to employers in 2021, enabling them to offset certain payroll taxes. For each quarter of 2021, the first $10,000 of wages per employee will be eligible for a 70% credit. Therefore, the credit is worth up to $7,000 per quarter and $21,000 per year for each employee.
DID YOU KNOW
Businesses can claim this credit even if they received a PPP loan
In 2020, qualifying businesses were faced with a choice: they could either apply for a PPP loan or claim the ERC tax credit. But now, thanks to new legislation, qualifying businesses are eligible for both even if they had their PPP loans forgiven. The ERC is different from the Paycheck Protection Program, there are no funding limits – every eligible business can benefit from it – but due to the complexity and revisions, many have yet to take advantage of it. That’s where we come in.
One of the most favorable provisions in the new CAA allows taxpayers to both receive PPP loans and claim the ERC. Previously, companies in need of cash infusions during 2020 turned more frequently to PPP loans as a source of funds rather than ERC. The new law allows businesses to claim the ERC even if they received PPP loans, regardless of forgiveness. Additionally, the ERC can be claimed retroactively to March 12, 2020. As a result, companies receiving PPP loans in 2020 can now explore potential ERC credits for 2020 and 2021.
We specialize in helping businesses maximize their ERC credits
We’re making it easier and less taxing to file for what industry professionals call the most lucrative tax credit program in recent history. Our team of qualified professionals will walk you through every step of the process, ensuring you receive the maximum benefit available for your business.
Leave behind the headaches of filing your ERC and let our team of professionals do it for you. We will walk you through every step of the process, ensuring that your business remains in full compliance with all ERC guidelines while saving time and money.
Take our Survey
Please complete our online survey to determine your eligibility.
Fill out our short questionnaire to determine whether you qualify for the Employee Retention Tax Credit. Your eligibility can be determined in as little as ten minutes.