What is the Employee Retention Credit?

Putting it simply, the Employee Retention Credit (ERC) is exactly what it sounds like–business owners are being rewarded for their efforts to keep 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.

5 Things to Know about the ERC

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

Not every business qualifies for ERC

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. The program is still not living up to its potential. Many business owners are disqualifying themselves prematurely due to misinformation about who qualifies and who doesn’t.

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.

This payroll tax credit is available to essential and non-essential businesses in any industry that endured the effects of the pandemic. Many business owners have had to adjust to the fact that there were many government orders at all levels, including those from the federal, state and local governments. Examples of affected businesses include a restaurant that could not let customers dine indoors or a manufacturer that had to slow their operations due to new health and safety restrictions.

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

Shut down completely

Partial shut downs

Interrupted operations;

Supply chain disruptions

Inability to access equipment

Capacity to operate is limited

Inability to communicate with vendors

Reduced services or goods provided to customers

Cut down on your hours of operation; and

Shifting hours to increase sanitation of your facility

For additional information about how does erc credit work take a look at our web page: click here