The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act contains a business relief provision known as the Employee Retention Credit (ERC), a refundable payroll tax credit, for “qualified wages” paid to retain full-time employees from March 13, 2020, to Dec. 31, 2021.
For 2020: Did your gross receipts have a 50% decline compared to the same quarter in 2019?
For 2021: Did your gross receipts have a 20% decline compared to the same quarter in 2019?
Do you have employees?
If you answered yes to these questions, then you may be eligible for the Employee Retention Credit!
- If you received a PPP loan, you may still qualify for the ERC for any wages not paid with proceeds from the forgiven portion of your PPP loan
- For 2020 an employer can receive a credit equal to 50% of the first $10,000 of Qualified Wages paid per employee in all quarters meaning maximum ERC would be $5,000 per employee.
- For 2021 the ERC rate per employee is increased to 70% of qualified wages and the per-employee wage limit is increased to $10,000 per quarter for 2021.
- Group health care expenses is also included in qualified wages
Please contact us for assistance with determining eligibility and claiming the credit!