The Employee Retention Credit
To assist small businesses impacted by COVID-19, Employer Capital established our Government Aid Division.
The Employee Retention Credit (ERC) Program is our area of expertise.
Details of the ERC Program
What is the Employee Retention Credit (ERC)?
The Employee Retention Credit (ERC) is precisely what it sounds like.
ERC is a stimulus program created to aid companies that were able to keep their workforces throughout the Covid-19 outbreak.
It is a grant, not a loan, that you can apply for on behalf of your company and was created under the CARES Act. Small and mid-sized firms can use the ERC. Based on eligible salary and healthcare benefits provided to employees.
➔ A maximum of $26,000 per worker
➔ For 2020 and the first three quarters of 2021 alone
➔ Qualifying with a COVID event or lower revenue
➔ No cap on funding
➔ Refundable tax credits (ERC)
How much money are you able to recover?
For 2020, you can submit up to $5,000 per employee. The credit for 2021 might be as much as $7,000 per employee every quarter.
How can you determine if your company qualifies?
Your company must have suffered a negative effect in one of the following areas to be eligible:
➔ A government agency mandated your company’s partial or complete closure in 2020 or 2021. This includes the inability to travel, constraints on group gatherings, or your activities constrained by commerce.
➔ When comparing the current quarter to 2019 pre-COVID levels, the 2020 and 2021 gross receipt reduction requirements differ.
➔ A company may be qualified for one quarter but not another.
➔ Initially, companies were not eligible for the ERC under the CARES Act of 2020 if they had already obtained a Paycheck Protection Program (PPP) loan. Employers are now qualified for both programs due to new law that will take effect in 2021. However, the ERC does not apply to earnings that are equal to those for PPP.
The ERC has undergone several modifications and contains a wealth of technical information, such as identifying eligible employees and computing qualifying salaries. Your company’s unique circumstances can need a more thorough assessment and analysis. The application is intricate, so you could have many questions after using it.
We can assist in making sense of everything. Our specialists will lead you and lay out the procedures you must take to optimize the claim for your company.
Our Partner Results
➔ 10000+ Customers Enrolled
➔ 3 Billion + Processed
➔ 350000+ Employee's Enrolled
Our services include:
➔ An exhaustive assessment of your eligibility
➔ A thorough examination of your claim
➔ Advice on the claiming procedure and supporting paperwork
➔ Specialized software knowledge that a typical CPA or payroll processor may not possess
➔ Quick and easy procedure from application to claiming and receiving reimbursements
Dedicated experts will translate the intricate program rules and be accessible to address your inquiries, such as:
➔ How does the PPP loan affect the ERC?
➔ What variations exist between the 2020 and 2021 programs, and how do they relate to your company?
➔ How do I understand the executive orders issued by several states, and what are the aggregation rules for larger, multi-state employers?
➔ What impact do tipped, part-time, and union employees have on the size of my refunds?
Are You Prepared To Begin? It's easy.
1. We decide if your company is eligible for the ERC.
2. We evaluate your claim and determine the maximum sum you may be eligible to receive.
3. Our team walks you through the whole claim procedure, including the required paperwork, from start to finish.
EMPLOYER CAPITAL (ERC FAQS)
The Employee Retention Credit is a refundable employment tax credit based on qualified wages and health plan expenses for eligible firms. During the economic catastrophe caused by the Coronavirus, employers could use ERC/ERTC funding to continue paying existing employees and keep businesses running and employees working. It was a method for US businesses to stay afloat during the COVID-19 pandemic’s shutdowns. Still, millions of unclaimed cash are available today, and practically any company hit by the epidemic is eligible to claim their credit.
To qualify for the ERC/ERTC, a business must meet the following COVID-19-related criteria: a) the business was wholly or partially closed or had to reduce hours due to a government order; b) employers saw a significant decrease in gross receipts in 2020 or 2021 when compared to 2019 gross receipts; and c) the business is a recovery startup, operational in the third and fourth quarters of 2021.
The maximum credit permitted under the ERC/ERTC was $5,000 per employee when it was initially established as part of the CARES Act in 2020. The maximum credit increased to $21,000 with its renewal and enhancement under the Consolidated Appropriations Act (CCA), 2021. When the CARES Act was implemented, businesses had to choose between the ERC/ERTC and the Paycheck Protection Program (PPP). Many chose PPP because it was quicker to sign up for a Small Business Administration-backed loan than to learn the specifics of ERC/ERTC qualifying. However, subsequent legislation expanded the eligibility standards for enterprises, allowing them to get both, making this a must-do opportunity for firms.
Even though the Infrastructure Investment and Jobs Act (IIJA) of 2021 accelerated the ERC/expiration of ERTC’s date, essentially terminating the program in the fourth quarter of 2021, businesses are still permitted to file payroll tax returns for the covered periods. Employers who filed their payroll taxes in 2020 might deduct the money straight from their quarterly payroll taxes. Those who did not file in 2020 or claim the ERC/ERTC on their payroll taxes for the first time in 2021 will be reimbursed for quarterly filed periods.
The ERC/ERTC is a federal credit taken on a company’s quarterly payroll taxes, not the firm’s taxes, based on the number of full-time employees (30+ hours) the company had during the eligible period. The credit is calculated quarterly based on eligible wages paid per employee. In 2020, the refundable tax credit was 50% of eligible wages, up to a maximum of $5,000. It was 70% of eligible wages up to $21,000 in 2021. The IRS issues a refund check for the amount of the claimed credit.
If a company meets ERC/ERTC eligibility standards, the credit can be claimed on previously filed payroll tax forms. ERC/ERTC professionals in accounting departments and tax preparers can swiftly determine whether a business is eligible for the credit and provide any necessary advice. If the qualifications are met, these professionals can file modified payroll tax forms and submit them to the IRS for the qualifying quarters.
The Employee Retention Credit is not a deception. The ERC is a genuine tax credit established by the CARES Act. The IRS is still taking retroactive ERC claims and issuing refunds for paid 2020 and 2021 payroll taxes.
A branch of Employer Capital
EMPLOYER CAPITAL helps clients with various financial assistance programs, including the Employee Retention Credit Program.
About Employer Capital
We are a contingency-based, risk-free cost-savings organization. We bargain with their current providers to secure the best terms for our clients. We check previous invoices for inaccuracies and refund or credit our customers. We raise the organizations of our clients’ profitability and overall value. We firmly believe that all creatures are created equal. Therefore, we place a high priority on protecting future generations’ access to the environment, sustainability, and the rights of animals. We offer our customers the chance to donate a portion of the cost savings we realize to organizations they care deeply about through our “Line Up For Charity” initiative. We offer a workplace where you can have an impact.
Do you want to learn more, or do you have any inquiries?
Schedule an ERC Introduction Call
ERC is a stimulus program created to assist companies that were able to maintain their workforces during the Covid-19 outbreak. Schedule an ERC Introduction Call.
Maximum of $26,000 per worker
For 2020 and the first three quarters of 2021.
Reduced revenue or a COVID occurrence qualifies.
To find out if you qualify for the ERC Program and to learn more about it, please set up a call with one of our ERC Advisors.