Employee Retention Credits

The ERC is a fully refundable tax credit for employers equal to 50% of qualified wages that Eligible Employers pay their employees during 2020 and 70% in 2021.

Eligible Employers are employers that carry on a trade or business during calendar years 2020 or 2021, including tax-exempt organizations, that either:

• Fully or partially suspend operation during any calendar quarter due to orders from a governmental authority limiting commerce, travel, or group meetings due to COVID-19; or
• Experience a significant decline in gross receipts during a calendar quarter.

2020: 50% decline 2020 calendar quarter vs. 2019

2021: 20%  decline 2021 calendar quarter vs. 2019 or sequential calendar quarter

2020: 50% of qualified wages up to $5,000 per employee

2021: 70% of qualified wages up to $21,000 per employee

YES! Receipt of and forgiveness of a PPP loan does not disqualify you from receiving an ERTC.  The caveat is that you cannot claim the same payroll for both.  In most scenarios, even companies that maxed out their PPP loan and forgiveness still have excess ERTC’s available to them!

ERTC’s are claimed by amending quarterly payroll Form 941 based on supporting calculations for the credit.  The credit is initially an offset of employer- paid social security tax with the excess credit being refundable in cash.

Let us do the heavy lifting for you.  Our experts require minimal client time and simply need access to certain company records to perform a though analysis and provide you an audit-ready compliance file.  More than that, we actually integrate with your payroll provider to file for the ERTC’s on your behalf!