Employee Retention Tax Credit
Do You Own a Business with W-2 Employees?
Did You Retain Your Employees Through the 2020-2021 Lockdown?
Have you Applied for your Tax Credit yet?
Your business may qualify for a $26,000.00 Employee Retention Tax Credit for EACH EMPLOYEE you kept during the lockdown!
The Employee Retention Tax Credit (“ERC”) is an economic recovery program created by the CARES Act – the same legislation that created the Paycheck Protection Program (PPP). In addition to PPP, your business may qualify for a stimulus check of up to $26,000 per employee by claiming employee retention tax credits.
- UP TO $26,000 PER EMPLOYEE
- AVAILABLE FOR 2020 & Q1 – Q3 2021
- QUALIFY WITH DECREASED REVENUE
- OR QUALIFY WITH COVID EVENT
- NO LIMIT ON FUNDING (ERC IS NOT A LOAN)
- ERC IS A REFUNDABLE TAX CREDIT
Even if you RECEIVED a PPP Loan
Avoid the Misinformation
You may have been told that you’re not eligible to receive the Employee Retention Credit by your CPA.
Most Likely FALSE!
This is why we partner with EXPERTS whose sole mission is to help companies navigate through the steps to receive their tax credit. Your CPA specializes in income tax, this is Payroll Tax.
Some Common Questions
Do I Have To Repay The ERC Credit?
No. This is not a loan. It’s a refundable tax credit. When your ERC claim is filed, a refund check is requested for you
Can I get ERC Funds if I already took the PPP?
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can’t use the same dollar for dollar funds. This is taken into account when processing your ERC credit.
My revenue went up in 2020, can I still qualify for the ERC program?
Yes! There are two possible qualifications for 2020: revenue reduction, or a “full or partial shutdown of your business due to COVID-19”. Specifically the IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
Can I qualify for the ERC if I'm self employed?
No, if you are majority owner (over 50%) of your company then your wages do not qualify
Is the ERC Credit taxable?
The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes