Important Information Regarding Employee Retention Credit

What is the Employee Retention Credit?

Simply put, the Employee Retention credit (ERC), is exactly what it sounds. It rewards business owners for keeping employees on payroll during the pandemic. We are working closely with decision-makers in Washington on this nationwide effort to help the U.S. economy not only recover from the pandemic but come back stronger than before.

Five Things You Need to Know About the ERC

We’re going to help you cut through all the noise. You should know that:

ERC is not for every business.

Most likely, you won’t be able to claim $26k per employee

Not every COVID impact qualifies a business

Not every government guideline qualifies a business

How much ERC can you claim if you claim PPP?

How to Qualify

Even if you have already reviewed the ERC, we recommend that you take a second look with one our specialists. Unfortunately, the program is not yet living up to its full potential because many business owners are prematurely disqualifying themselves due to misinformation and rumors about who does or doesn’t qualify.

The overarching theme for businesses to focus on is how the coronavirus pandemic impacted our economy as a whole… so even if your business grew or was deemed an essential business during the pandemic, there are more qualifying factors to look at before you disqualify yourself.

The payroll tax credit is available to all essential and non-essential companies in any industry that has suffered the effects of the pandemic. Government orders–on federal, state, and local levels–are a major factor that many business owners had to adapt to over the last year and a half. One example of a affected business is a restaurant that couldn’t allow customers to eat indoors, or a manufacturer who had to slow down their operations because of new safety and health regulations.

Here are some impacts to consider that help you determine your business’s eligibility for the ERC:

Shut down completely

Partial shutdowns;

Interrupted operations;

Supply chain disruptions

Inability to access equipment

Limited capacity to operate;

Inability to work with your vendors;

Reduced services or goods provided to customers

Cut down on your hours of operation; and

Shifting hours to increase sanitation of your facility

To read more about are erc credits taxable check out our new webpage