Employee Retention Credit (ERC)

The Employee Retention Credit (ERC) is a refundable tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to Dec. 31, 2021. Eligible employers can claim the ERC on an original or adjusted employment tax return for a period within those dates. (Employee Retention Credit | Internal Revenue Service (irs.gov))

 

There’s still time to apply!  The ERC filing window closes only once for each year of the ERC: for all quarters in 2020, the deadline to apply for the ERC is April 15, 2024, and for all quarters in 2021, the deadline is April 15, 2025.

 

How we can help

Our partner company is completely dedicated to helping small to medium-sized businesses succeed in an increasingly complex and dangerous world. Those risks must be matched against it also being a time of immense opportunity. The balance between these forces requires specific expertise developed at incredible prior cost. Their consultants have “been there before” and are dedicated to using that experience to craft a safe and profitable path through a rapidly changing environment.

 

What are the requirements for the ERC?

Your business has to have been operating at some point during March 2020 – December 2021 and you have to have paid wages to employees. Certain businesses qualify automatically based on when they opened, but any business can qualify if experienced a significant decline in revenue or was subject to a full or partial shutdown order. Call us and we can talk about your particular situation.

 

How much money can I get?

The maximum possible credit is $33,000 per employee. The amount you will get is based on a number of factors including PPP loans received, how much you pay employees, whether you receive certain tax credits and other factors.

 

How long does the process take?

We usually finish all of the documents necessary to claim the credit within a couple weeks of receiving your information. Once submitted, it can take 4-8 months before you receive the funds depending on how quickly your claim is processed.

 

 

Do I have to pay the money back?

No! It is not a loan like the PPP or the SBA disaster loans. There is no repayment requirement.

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Contact us for more information