Not Too Late for The ERC Employee Retention Tax Credit: How to Claim ERC It!

The ERC Employee Retention Tax Credit (ERC) is a powerful tool for business owners affected by the COVID-19 pandemic. If your business has lost money due to government shutdowns or the economic impact of the pandemic, you may be eligible for the ERC. In this blog post, we'll explore the specifics of the ERC, the requirements to claim it, and how to go about claiming it if you've been affected by the pandemic.

What is the ERC?

The Employee Retention Credit (ERC) is a refundable tax credit available to businesses affected by the Covid-19 pandemic. The credit applies to any employer that has been impacted by either a full or partial shutdown due to the pandemic, or an inability to operate at normal capacity due to Covid-19 health regulations. This means that businesses who have had to lay off employees or had to reduce hours due to the pandemic are eligible for the ERC. The credit can also be claimed by businesses that have seen a significant decline in gross receipts as a result of the pandemic. The ERC is meant to help employers keep their employees and weather the economic storm caused by Covid-19. By claiming the credit, businesses may receive up to $5,000 for each qualifying employee for wages paid between March 13th 2020 and December 31st 2020.

How do I know if I'm eligible?

Businesses affected by the Covid-19 pandemic and government shutdowns may be eligible for the Employee Retention Tax Credit (ERC). To qualify for the credit, businesses must meet certain criteria.

The business must have experienced a full or partial suspension of operations due to a COVID-19 related governmental order or experienced at least a 50% decline in gross receipts compared to the same quarter in the prior year. Additionally, employers must have an average of fewer than 500 full-time employees in 2020, and those employees must continue to receive pay and benefits from the business during any period of the credit.

The ERC is available to employers who had employees on payroll between March 13, 2020 and December 31, 2020. If you meet these criteria, then you are likely eligible for the credit. It's important to remember that the ERC is based on wages paid between March 13, 2020 and December 31, 2020. Therefore, if your business has not yet shut down or experienced a decline in gross receipts, but is likely to do so in 2021, you can still claim the ERC in 2021.

What are the benefits of claiming the credit?

Claiming the Employee Retention Tax Credit (ERC) can provide businesses affected by the COVID-19 pandemic with a significant amount of financial relief. The credit allows businesses that have been shut down or had to reduce their operations due to the pandemic to receive a refundable tax credit equal to 50% of the wages they pay employees between March 13, 2020 and December 31, 2020, up to $5,000 per employee. Additionally, employers are eligible for an additional 20% of wages paid in 2021. This credit is available to any business, including sole proprietors, corporations, partnerships and nonprofits, that has experienced a full or partial shutdown or significant decline in gross receipts as a result of the pandemic. By claiming this credit, businesses can ensure that they get the most out of their employees’ salaries and can remain financially stable during these uncertain times.

How do I claim the credit?

If your business has been affected by the Covid-19 pandemic or government shutdowns, you may be eligible for an Employee Retention Tax Credit (ERC). The ERC is a tax credit for employers who have suffered a significant decline in gross receipts due to the pandemic and are still paying employees. To qualify for the credit, businesses must have been in operation for at least 90 days during 2020 and have experienced either a 50% decline in gross receipts compared to 2019 or have shut down due to government orders.

If you want to learn how to qualify, click here to claim ERC money now!