Employee Retention Credit (ERC) Tax Refunds

Recover Up To $26,000 Per Employee As A Payroll Tax Refund

The Employee Retention Credit (ERC) was approved under the CARES Act for employers affected by the COVID-19 pandemic as an inducement to keep their employees on the payroll and off of unemployment compensation. The ERC is a refundable tax credit per employee by an eligible employer. You can receive up to $26,000 per employee!

The ERC was not widely used until March 2021, when updated IRS regulations made this type of COVID-19 relief more accessible. In short, thousands of businesses who once picked between the Paycheck Protection Program (PPP) and ERC can now possibly use both, by amending their Quarterly Form(s) 941.

If you have any questions about the ERC and whether your company is eligible, please contact your CPA or tax advisor.

Apply Now While It’s Available

Currently, you are eligible to file for a retroactive refund three years from the date of your original qualifying tax filing, thanks to a legislative extension. For 2020, businesses have until 2023 to file for the tax refund. However, government-funded programs are subject to change. Other funds like PPP and Restaurant Revitalization have run out without notice.

Do you meet the criteria to apply for the Employee Retention Credit?

Criteria #1: In 2020, must have no more than 100 full-time W-2 employees. In 2021, must have no more than 500 full-time W-2 employees.

Criteria #2: Must also have either reduced business receipts or have been fully/partially shut down by government order.

In addition, if incorporated after Feb. 15, 2020, your business may qualify as a Recovery Startup Business (RSB) and be entitled to ERC tax refunds of up to $100,000 over the last two quarters of 2021.

If you have any questions about the ERC and whether your company is eligible, please contact your CPA or tax advisor.

Articles

Claiming PPP Loan Forgiveness and the Employee Retention Credit

As business owners who received a Paycheck Protection Program loan prepare to file their 2021 taxes, they need to consider whether they are also eligible to claim the Employee Retention Credit. The two must work together. Read more for an introduction to the complex tax situation.

10 Considerations
Understanding the CARES Act: Employee Retention Credit

The IRS released a set of frequently asked questions regarding the Employee Retention Credit available as part of the newly released CARES Act.

Understanding the Cares Act
Understanding the ERC

Eligible businesses can now access Employee Retention Tax Credit (ERTC) for both 2020 and 2021 for eligible employee wages as long as these specific payroll wages and/or group benefits were not directly paid with Paycheck Protection Program (PPP) loan funds.

Understanding the ERC