Employee Retention Credit

Contact us today to see if you qualify

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As we continue to reel from the economic impact of the pandemic and employers are seeking relief, the expanded Employee Retention Credit could be the “shot in the arm” (pun intended), many small business owners need. Contact us to see if you qualify.

How We Help

After an initial consultation about your company and its eligibility, our team of licensed CPAs and ambitious accountants will help calculate which wages qualify, compile necessary documentation, and guide you through the application process.

 

FAQS About the ERC

What is the ERC?

The employee retention credit (ERC) provides financial relief to employers who kept employees on their payroll despite seeing a substantial decrease in their gross receipts due to the COVID-19 pandemic. The ERC was established by the 2020 Coronavirus Aid, Relief, and Economic Security Act, but the credit has been significantly modified and expanded to cover wages paid through 2021.


Do I Qualify?

Maybe! It is available to eligible employers who saw substantial reductions in their gross receipts during 2020 and 2021 as a result of the COVID-19 pandemic. The amount of the ERC is based on the wages paid to the employees they kept on the payroll.

Most employers can qualify for the credit, including colleges, universities, hospitals, and 501(c) organizations. Eligible employers must show that one of the following applied for the quarter for which it is seeking the credit:

  • Operations were partially or fully suspended, or hours were reduced due to a government order. The ERC can only be claimed for the time when business was suspended.

  • The business saw a significant decline in gross receipts. To claim the credit in 2020 the business needed to show a greater than 50% decline in gross receipts compared to the same quarter in 2019. To claim the credit for 2021, the employer only needed to show a decline of more than 20% from the same quarter in 2019.

If your business received a Paycheck Protection Program (PPP) loan it might still qualify for the ERC for wages that were not paid using the proceeds from the portion of the loan that was forgiven.


Is it Taxable?

No. But also, yes… The ERC is not includible in gross income, but it is subject to expense disallowance rules.


If I got a PPP Loan, can I still qualify?

Absolutely, however the amount of relief you can be eligible for is reduced by the amount of PPP funding was used to cover payroll expenses.

Seems like a lot of math.

It is. To avoid costly mistakes, we recommend seeking help of a professional consultant.