Let Us Help You Get Cash Your Business is Entitled To

The Employee Retention Tax Credit (ERTC) was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support small business owners through the government-imposed shutdowns. By claiming the ERTC for 2020 and 2021, employers can receive up to $26,000 per full-time employee in the form of a direct payment from the IRS.

Are you eligible to qualify?

• Quarters Q2, Q3, Q4 in 2020 and Q1, Q2, Q3 in 2021
• Government/state order to partially or fully shutdown
• Decrease in revenue of 50% compared to same Q in 2019 for 2020 and 20% decrease compared to same Q in 2019 for 2021
• Less than 100 FTE in 2020, and less then 500 FTE in 2021
• $5k per year per FTE in 2020 and $7k per quarter per FTE in 2021
• If you received a PPP loan, you can still claim the ERTC, but only with qualified wages not counted as payroll costs covered by PPP loan forgiveness.  Qualified wages can be applied to either the ERTC or PPP, but not both.

Businesses that were incorporated after 2/15/2020, can qualify as a Recovery Small Business (RSB) and can claim up to $50,000 in credits for 2021 Q3 and 2021 Q4.

• Incorporated after 2/15/2020
• Do not have annual gross receipts over $1M
• Not eligible for the ERTC
• Q3 & Q4 2021
• $10k per EE per quarter
• Cap of $50k per quarter

Rightly so. There are many other considerations and exemptions, including what constitutes qualified wages, how to calculate health expenses, and what documentation the IRS requires for this very beneficial and wide-ranging refund. Make sure you work closely with your tax advisor as there have been several iterations of this tax credit since its introduction.