Employee Retention Tax Credit
Employee Retention Credit
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 Details
2020: CARES Act
- March 13, 2020 – December 31, 2020
50% of up to $10,000 qualified wages per year for full-time employees.
Maximum credit of $5,000 per employee
Wages total cannot include those paid by forgiven PPP loan proceeds
2021: Covid-19 Relief Package
- January 1, 2021 - December 31, 2021
70% of up to $10,000 qualified wages per quarter for all 2021 quarters
Maximum credit of $28,000 per employee
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Does My Business Qualify?
2 Ways to Qualify
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This refundable tax credit for businesses and tax-exempt organizations has different requirements depending on the time period for which you claim the credit – and we can help through the entire process: application to refund checks!
Determine and document qualification for ERC
Calculate the ERC, including the forgiven PPP amount if applicable
File the relevant documents with the IRS
Defend claims if required by audit