Retention Credit

Helping small businesses get the rewards 

they deserve.

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.

Group of employees walking down the stairs
  • 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

Eligibility Requirements

ERC is available to any trade or business as long as they meet one of these two criteria: 

Man standing at desk looking at computer

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

(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
Suspension Qualifier
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

Still Looking for More Info?

Copyright 2021 National Tax Group. All rights reserved. Website by AR Design