Helping small businesses get the rewards they deserve.
ERC is available to any trade or business as long as they meet one of these two criteria:
- Have operations that were fully or partially suspended during any calendar quarter in 2020 or 2021 due to COVID-19
- Experienced a significant decline in gross receipts during the calendar quarter
How We Make Qualifying Simple
Send us all required documentation for each calendar quarter.
We’ll work swiftly to determine eligibility and calculate all credits.
You receive a completed
941-X and submit!
Employee Retention Credit
AT A GLANCE
(03/20 - 12/20)
Q1 & Q2
|Max Credit Per Employee||$5,000 Per Quarter||$7,000 Per Quarter|
|Revenue Qualifier||50% Gross Receipts Decline vs 2019 same quarter||20% Gross Receipts Decline vs 2019 or 2020 same or prior quarter. Employers that did not exist in 2019 can use 2020 revenue numbers.|
|Partial or Full
|The operation of a trade or business is partially suspended if a government authority imposes restrictions on the employer's operations by limiting commerce, travel, or group meetings due to COVID-19 such that the employer can still continue, but not all of its typical operations.|
|Governmental Orgs||None||Public Colleges, universities, organizations whose principal purpose is providing medical or hospital care, certain federal instrumentalities like credit unions.|
|Recovery Startup Business||None||Business beginning operations after Feb 15, 2020 qualify regardless of revenue or shutdown orders. Max $50,000 per quarter|
|Can claim PPP & ERC||Yes|
UNDERSTANDING THE EMPLOYEE RETENTION CREDIT
Originally passed in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Employee Retention Credit (ERC) was designed to encourage employers to keep employees on payroll throughout the pandemic, even if they were not actively working.
Eligible employers can claim this refundable tax credit against qualified wages and health plan expenses paid to their employees. The ERC is available to employers that operated during the pandemic and experienced either a significant decline in gross receipts or a full or partial suspension of business operations due to government orders.
- Available for 2020 and the first 3 quarters of 2021
- Earn a credit of up to $26,000 per employee
- Claim a credit against 70% of qualified wages paid in 2021
- Employers who claimed PPC loans are eligible
- ERC is a refundable tax credit