Are you eligible to EMPLOYEE RETENTION CREDIT (ERC)?

Offering up to $26,000 for each worker during 2020/2021. An incentive which delivers substantial financial advantages to qualifying businesses. You can check your eligibility in advance:

Check your eligibility
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Has your enterprise experienced a mandatory shutdown or faced limited operations?

If YES, you could be eligible.

  • Firms may have faced mandatory shutdowns.
  • Some businesses had to limit their operational hours.
  • These disruptions led to difficulties in procuring supplies for many.
  • Businesses included are those affected directly by these disruptions.
  • Demonstrating an inability to obtain necessary supplies due to these disruptions is crucial.
  • Such businesses could be considered for the ERC.
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Did your company’s overall earnings decrease in comparison to the same period previously?

If YES, you could be eligible.

  • Eligibility for the ERC is influenced by a significant drop in revenue.
  • In 2020, businesses with a 50% decrease in earnings compared to 2019 might qualify.
  • By 2021, the eligibility threshold was relaxed, with only a 20% revenue decline needed.

Frequently Asked Questions

What is the ERC credit?

The ERC is a tax credit given to employers, introduced at the onset of the COVID-19 pandemic, to assist them in retaining their employees by compensating their payroll expenses.

How do I claim employee retention credit for 2021?

The Employee Retention Credit, claimed on a company’s quarterly IRS payroll tax returns, is based on wages paid during pandemic-related business disruptions or revenue declines.

Can I still claim employee retention credit for 2020?

Absolutely! The Employee Retention Credit can be filed on a revised quarterly payroll tax return for up to three years from the deadline of the initial submission.

How long does it take to receive employee retention credit refund?

Due to the pandemic-induced backlog, the IRS now takes 8-9 months to process Employee Retention Credit claims.

Are large and small employers treated differently?

Small qualified employers can count wages of all employees, including part-timers. However, large qualified employers can only include wages paid to employees when they aren’t working.