Employee Retention Credit Assistance

Facts About the Employee Retention Credit (ERC)

A lot of organizations are confused about the ERC, what it is, how it works, and whether they are eligible.  We can answer some of these questions here, but if you want more detail, just give us a call!

What is the ERC?

Think of it as a cash rebate from the IRS, rewarding businesses for not giving up.

The ERC was part of the CARES Act in 2020, but it didn’t get the attention that PPP did.  Originally, you had to pick one or the other and PPP was easier.  A subsequent Act changed requirements so that you can now get ERC even if you got PPP.

It is a refundable tax credit for each employee on the payroll of $5,000 in 2020 and up to $7,000 each quarter for the first three quarters of 2021.

How Do I Qualify?

For the financial test, you qualify if you operated during calendar year 2020 or 2021 and experienced a significant decline in quarterly gross receipts versus the same quarter in 2019.  For 2020, the percentage is a 50% reduction and for 2021 the percentage is a 20% reduction.

Operations Test

If you experienced a full or partial suspension of the operation of trade or business during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to covid-19.

We can help!

Determining whether you qualify and filing the paperwork can get really complicated…… but there is help.

Our partner, EZ-ERC, assists with the detailed analysis and calculation of your ERC as well as preparing and filing forms to claim the refundable credit. ERC’s team of CPAs, Lawyers and payroll specialist can efficiently and effectively help you maximize your ERC claim.

Please remember that even if you qualified and received PPP (Payroll Protection Program) funds, you may be eligible for ERC. For more information, please contact Georgeanne Muchnok at 412-578-0200 x1