Claim your employee retention tax credit (erTc) today

In the CARES Act of 2020, Congress created the ERTC to reward and encourage businesses to keep their employees on payroll during the COVID-related shutdowns. The ERTC aimed to incentivize employee retention by offering employers a quarterly credit for each qualified employee.

The ERTC has a maximum credit of $5,000 per employee in 2020 and $21,000 per employee in 2021. Employers can still retroactively take advantage of this credit against federal employment taxes on qualified wages paid to their employees from the 4^th Quarter of 2020 and 1^st, 2^nd and 3^rd Quarters of 2021.

All companies are eligible for the Employee Retention Tax Credit, though certain requirements need to be met. Call us today at 800-800-4600 or complete the form on this page to see if you’re eligible, and for how much.

2020 Employee Retention Tax Credit Requirements

You may be eligible for the Employee Retention Tax Credit if you operated a trade or business during calendar year 2020 and experienced:

• A full or partial suspension of operation during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to COVID-19

• In Q4 of 2020, you experienced a decline in gross receipts of 50% from the corresponding quarter in 2019 or less than 80% of gross receipts in the preceding quarter.

2021 Employee Retention Tax Credit Requirements

You may be eligible for the Employee Retention Tax Credit if you operated a trade or business during calendar year 2021 and experienced:

• A full or partial suspension of operation during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to COVID-19, OR
• Your business revenue declined by 20% or more in any quarter of 2021 compared to the same quarter in 2019 or the immediately preceding quarter.

• All 3 quarters in 2021 are eligible to use the 80% gross receipts test versus the preceding quarter or the corresponding quarter from previous year instead to 50% drop in gross receipts, refund up to 70% of $10,000 per employee.

The Infrastructure Investment and Jobs Act, enacted on November 15, 2021, amended section 3134 of the Internal Revenue Code to limit the Employee Retention Credit only to wages paid before October 1, 2021, unless the employer is a recovery startup business.

For more information see: IRS issues guidance regarding the retroactive termination of the Employee Retention Credit.

The ERTC is a refundable credit, not a tax deduction. Once the dollar amount is calculated, most businesses that qualify will receive payment as a check.

Mask mandates by the CDC do not typically qualify as a suspension or limiting activity in business. To qualify as partially suspended, an employer’s business operations must have been limited due to a federal, state, or local order, proclamation, or decree that affected the employer’s operations.

Employers across a wide range of industries, including education, government contractors, healthcare, hospitality, retail, restaurants, industrial, not-for-profit, professional services, real estate, construction, and technology, plus more may be eligible for ERTC.

• Supply chain disruptions
• Time taken away from shifts to clean/sanitize
• Time to wear PPE
• Federal, state or local mandates required your business to fully or partially shut down
• Limitations on the number of people you could have in a room or building
• Inability to attend normal networking events
• Disruptions to your sales force’s ability to function normally
• Limited capacity to operate
• Inability to work with vendors
• Reduction to the services or goods offered to customers
• Reduction to the hours of operations
• Shifting of hours of operations to increase facility sanitation
• Delayed or canceled projects due to Covid related disruptions