Employee Retention Credit

What is the Employee Retention Credit?

The Employee Retention Credit (ERC), originally passed under the CARES Act, is a refundable tax credit that encourages businesses to keep employees on their payroll.

Eligible employers negatively impacted during COVID-19 can claim this tax credit against qualified wages paid to their employees (including qualified health plan expenses). Qualified employers can claim a credit against 70% of qualified wages paid. The amount of wages that qualifies for the credit is $7,000 per employee per quarter for the first three quarters of 2021.

Negatively impacted business owners can claim up to

$21,000

in refundable tax credits per employee in 2021.

Who Is eligible?

ERC is available to any trade or business operated during 2021, and experience either:

DID YOU KNOW?

Employers who received Paycheck Protection Program (PPP) loans may also qualify for ERC.

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Partner with us to find out if your business qualifies for the Employee Retention Credit.

The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

Employers can claim up to $5,000 in refundable tax credits for each employee on their payroll in 2020 and up to a $7,000 credit per quarter (excluding Q4) for each employee in 2021.

You're Not Too Late

After the passing of the Infrastructure Investment and Jobs Act on Nov. 15, the end date for the program’s end date retroactively changed to September 30, 2021, even though the program has ended, this does not mean the end for businesses.

You can retroactively claim the tax credit. Businesses have three years to conduct a lookback to determine if wages they paid after March 12, 2020, through the end of the program are eligible.

How Does Cost Segregation Work?

Through a cost segregation study, properties can be reclassified from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life, which enhances federal tax credit savings, and improves cash flow. Building and property owners are also able to retrieve missed deductions from previous years.

Who Qualifies for a Cost Segregation Study?

Almost any property from any company or industry can benefit from a cost segregation study. National Tax Group has performed cost segregation studies for a variety of industries over the last 20 years and have saved our clients millions in tax incentives. If your business owns property, chances are you can increase your cash flow with this tool.

Which Industries Can Benefit for a Cost Segregation Study?

Businesses like restaurants, hotels, apartment buildings, and commercial property have the most to gain from a cost segregation study. These businesses typically have the most lucrative outcomes from utilizing this tax tool.