What is the Employee Retention Credit (ERC)?
The Employee Retention Credit (ERC) Is A Federal Payroll Tax Credit Designed To Reward Businesses For Retaining Employees Despite Economic Hardships During The COVID-19 Pandemic. The Tax Credit Was Initially Signed Into Law In March Of 2020 As Part Of The CARES Act. The Credit Was Later Expanded Upon With The Consolidated Appropriations Act In December 2020 And The American Rescue Plan Act In June 2021. The ERC Program Ended When The Infrastructure Investment And Jobs Act Was Signed Into Law In November 2021.
Simply Put, Qualifying Business Owners Can Receive A Credit Of Up To $5,000 Per Employee Kept On Payroll In 2020, And Up To $7,000 Per Employee (Per Quarter, Excluding Q4) Kept In 2021 – For A Sum Total Of Up To $26,000 In Refundable Employment Tax Credit Per Employee Retained Throughout The Pandemic.
How is ERC different from the Paycheck Protection Program (PPP)?
The Paycheck Protection Program Was A Forgivable Loan, While The ERC Program Returns Payroll Taxes That Your Business Has Already Paid.
It Just Got Sweeter, Too: Certain Businesses Can Now Qualify For BOTH Programs, As The Consolidated Appropriations Act (CAA) Of 2021 Removed The Limitation That Stipulated Only One Program Could Be Claimed.
Essentially, Once You Receive The ERC Refund That You Qualify For From The US Treasury, Those Funds Are Yours To Keep. No Further Action Is Required.
How do I know if my business qualifies?
The IRS Expects 70% – 80% Of Small And Medium-Sized Businesses To Qualify, Which Could Very Likely Include Your Company.
If Your Business Experienced Disruptions To Commerce, Travel, Or Group Meetings, You Qualify! This Includes Supply Chain Disruptions, Price Increases, Staffing Shortages, Difficulty Hiring, Reduced Hours, Reduction In Goods Or Services Offered, Inability To Travel, Etc.
The Ways To Qualify Are Many, And It Is Certainly Worth Exploring Whether Your Business Qualifies For Any/All Of The Above Circumstances. Talk To One Of Our ERC Refund Specialists Today To Learn More.
Do I have to pay Employee Retention Credit (ERC) Back?
NO, YOU DO NOT HAVE TO REPAY THE ERC FUNDS YOU QUALIFY FOR.
This Is A Refund Of Payroll Taxes Meant To Reward Employers Who Saw Their Employees Through The Pandemic – It Is NOT A Loan. Therefore, It Is YOURS To Do As You See Fit For Your Business!
How do I file for Employee Retention Credit?
We recommend contacting ERCbee™. They are ERC specialists that can walk you through the entire process and maximize your return.