Employee Retention Tax Credit (ERTC)
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Get up to $26,000 Per Employee
What is ERTC?
Relief Funds for Small business owners who retained their W-2 employees and endured hardships during covid.
IF, you
Experienced suspended services?
Witnessed decline in revenues?
Experienced reduced business hours?
Retained your W-2 employees?
Then, IRS will grant you a credit of up to
$5,000
per employee
for 2020
$21,000
per employee
for 2021
Already received PPP Loan? No problem! You still qualify for ERTC
Find out your refund ammount
Frequently Ask Question
What is the Employee Retention Credit (ERC)?
The Employee Retention Credit is a tax credit created by the U.S. government to encourage small business owners who retained employees during COVID-19. An eligible employer can get up to $26,000 per W-2 employee (2021: $21,000 & 2020: $5,000).
Which Employers Qualify for the Employee Retention Credit?
An eligible employer is an employer that actively carried on a trade or business during calendar year 2020 or 2021, including tax-exempt organizations, and meets either of the two following criteria:
1. The business was fully or partially suspended or had to reduce business hours due to a government order. The credit applies only for the portion of the quarter the business was suspended, not the entire quarter.
2. The business has a significant decline in gross receipts in a way that gross receipts for a single quarter of 2020 decreased by 50% versus the same quarter of 2019 (for the 2020 tax credit), or gross receipts for a single quarter of 2021 decreased by 20% versus the same quarter of 2019 (for the 2021 tax credit).
Small or Large Business Owner?
The Employee Retention Credit (ERC) is available to Small business owners and in order to determine the business owner status for the ERC, the average number of full-time employees employed during 2019 must be determined.
~ For 2020 credits, an eligible employer is deemed to be a small business owner if they have 100 or fewer average full-time employees in 2019.
~ For 2021 credits, an eligible employer is deemed to be a small business owner if they have 500 or fewer average full-time employees in 2019.
What are the Qualified Wages for ERC?
Wages that are subject to FICA taxes, as well as qualified health expenses qualify when calculating the employee retention credit. These must have been paid after March 12, 2020 and qualify for the credit if paid through September 30, 2021 or, in some cases through December 31, 2021.
Note that same payroll costs can’t be used for both programs.
What is the covered period for ERC?
ERC can be applied for the quarters starting from 2020 Q2 through 2021 Q3, and in some cases, through 2021 Q4.
Can I still get ERC if I received PPP loans?
Yes, Employers receiving Paycheck Protection Program (PPP) loans are considered eligible for ERC and can get approved for even bigger dollar amounts than PPP.
Note that same payroll costs can’t be used for both programs.
How can I apply for the ERC?
If your business has previously filed 2020 and 2021 payroll tax reports (Form 941), you can retroactively claim the employee retention tax credit. In order to claim the credit for past quarters, employers must file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, for the applicable quarter(s) in which the qualified wages were paid.
You have until April 15, 2024, to file amended returns for Q2, Q3, and Q4 of 2020, and until April 15, 2025, to file amended returns for all 2021 quarters.
Do I need to pay back ERC funds?
ERC does not have to be paid back as it is not a loan. It is the reimbursement of payroll costs incurred during COVID-19 to retain W-2 employees.
Is ERC a taxable income?
The ERC is not considered a taxable income but the employers must reduce deductions for wages reported on their federal business income tax return.
This reduction occurs in the year the wages were paid, and therefore, these credits must be reflected on their respective income tax returns for the year (Income tax return that has already been filed, needs to be amended).
What is a recovery startup business?
ERC cannot be claimed for the fourth quarter of 2021, except if a business is deemed as a “recovery startup business”.
“Recovery startup business” is as an employer:
(i) That began carrying on any trade or business after February 15, 2020
(ii) Whose average gross receipts do not exceed $1 million within the taxable year
(iii) That is not otherwise an eligible employer due to a full or partial suspension of operations or a decline in gross receipts
How long does it take to receive the ERC refund?
It takes approximately 4-8 months for the IRS to process ERC claims and send refund checks to the business mailing address.
How much will it cost to assess if I am eligible for ERC?
We assess the initial eligibility and approximate amount of your credit at NO COST.
Why choose us?
Quick Process - It takes no more than 10 business days to process your ERC
Free Evaluation - We provide initial evaluation of your ERC without any costs involved
Confidentiality - Client's data confidentiality is our top most priority
Experts - We have a team of experts and have helped 100+ clients in getting more than $30 million in ERC
Dedicated Support - Our team provides dedicated support to each client by answering their queries and put their mind at ease