Employee Retention Credit (ERC) Consulting

The Employee Retention Credit (ERC) was created by the CARES ACT of 2020 to provide relief to businesses who were adversely affected by the Coronavirus Pandemic. This $370 Billion stimulus package provides funding to small businesses who retained their employees during the crisis. The ERC was improved and extended by both the Consolidated Appropriations Act of 2020 and the Covid-19 Relief Package of 2021. While the legislation has changed multiple times the current law allows businesses who experienced a significant reduction in revenue during Covid to qualify, as well as businesses who faced some sort of full or partial restrictions on their business. Our team assists in determining eligibility for the ERC and does all of the relevant calculations and filings to help our clients maximize the amount of funding available.

For 2020, the ERC provides a fully refundable credit of up to $5,000 per employee for businesses with 100 employees or less. Employers with between 101 and 500 employees can still qualify for the credit, but only on wages paid to employees NOT to work.

For 2021, the ERC provides a fully refundable credit of up to $7,000 per employee for each qualifying quarter in 2021, and the employee count threshold was increased from 100 to 500. The credit is currently available for the first three quarters of 2021. In total, an employer can receive up to $26,000 ($5,000 + $7,000 + $7,000 + $7,000) per employee for the years 2020 and 2021.

Businesses with less than 100 employees in 2020 and/or less than 500 employees in 2021 must meet one of the two requirements below to qualify for ERC.

1. Curtailment of Operations

Full or partial suspension of business operations as a result of government order, OR;

2. Significant Decline in Gross Receipts

2020 - Decline in gross receipts defined as 50% or greater than their gross receipts in the same quarter of 2019.

2021 - Decline in gross receipts defined as 20% or greater than their gross receipts in the same quarter of 2019.

Once we receive the audit agreement, we will provide you with a secure OneDrive weblink so you can drag and drop the requested files on our ERC checklist. Our tax specialists will review the documents after they are uploaded and they will notify you if they have any questions. In about 5-7 business days, we will notify you if you are eligible for the credit and we will breakdown the employee retention credit you are entitled to receive. At this point you will sign an CPA engagement letter to have our team file for the credit.