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Employee Retention Credit

Government Tax Credits

In order to provide economic relief to businesses and individuals during the Coronavirus pandemic, the CARES (Coronavirus Aid, Relief and Economic Security) Act was signed into law in March 2020. This $370 billion stimulus package makes funding available to small companies, which can be used to allow certain employers who retain employees during the crisis, to claim a tax credit. This tax credit is known as the Employee Retention Credit (ERC).

Employee Retention Credit

The ERC allows eligible employers to claim a credit against 50% of wages paid per quarter, up to $10,000 per employee annually, for wages paid between March 13, 2020 – December 31, 2020. The maximum credit is $5,000 per employee. In December of 2020, under the Covid-19 Relief Package, the ERC was extended from January 1, 2021 – December 31, 2021. This extension allows eligible employers to claim a credit against 70% of wages paid per quarter, up to $19,000 per employee for 2021, with a total of $29,000 per employee for both years.

Which Businesses Qualify & How?

There are 2 ways that a business can qualify for ERC: 1) full or partial suspension of business operations as a result of government order or, 2) a significant decline in revenue compared to the same quarter in 2019. Decline in revenue is defined as equal or greater than 50% for 2020 and equal or greater than 20% for 2021.

How do eligible employers qualify?

We will review the relevant financial records to calculate the dollar amount of the eligible employer’s expected credit. We will then complete and file the relevant IRS forms for the employer and retain all necessary documentation.

Are there any costs?

Contingency of 20% - only when employer qualifies and tax work is completed.

Cares Act

The Cares Act rules and regulations have changed rapidly. If you have been told you did not qualify, that has more than likely changed. The act was updated as late as December of 2021. Click the link below to schedule a meeting with us and find out how much you could get back.

Ready to get started?

Schedule a free consultation today with our knowledgeable and experienced team of experts to learn more about how we can help your business. We’ll provide information regarding the R&D tax credit and answer any questions you might have to determine if our solution is a fit for your company’s needs.