If you have employees,
you could be eligible for a tax credit
The ERC is a refundable credit that businesses can claim on qualified wages paid to employees during 2020 and 2021. The CARES Act introduced the latest ERC to encourage companies to maintain their payroll.
What is the Employee Retention Tax Credit?
The ERC provides a refundable employment tax credit, up to $5,000 per employee for 2020 and up to $26,000 per employee for 2021.
Is my company eligible for the ERC?
Many employers, including not-for-profits, qualify for the ERC. Eligibility is determined on a quarter-by-quarter basis.
How we can help your company
Our approach will provide the necessary documentation to properly claim and sustain the ERC credits you are due. The assessment is complimentary.
What is the ERC?
What might I expect in credits?
In 2020, the ERC entitled employers to a 50% credit (maximum of $5,000 per employee) of the qualified wages paid to employees. This amount increased to 70% (maximum of $7,000 per employee, per quarter) for 2021 with the American Rescue Plan Act (ARPA).
Under the recently enacted ARPA and previously under the Consolidated Appropriations Act (2021) the employee retention credit, a provision of the CARES Act, is extended and expanded. It can be claimed through Dec. 31, 2021 to eligible employers who retained employees.
Eligible employers that received a Paycheck Protection Program (PPP) loan are now permitted to claim the ERC for both 2020 and 2021.
To be eligible the employer has to show they either:
- Suspended operations fully or partially due to an official COVID-19-related shut down order
- Experienced a significant decline in gross receipts relative to the same quarter of 2019 (for 2021, the significant decline in gross receipts can also be measured by comparison to the prior calendar quarter)
Ready to Get Started?
How we can help
It takes a thorough and comprehensive approach to evaluating and documenting your companies ERC credits. ERC technical leaders are available to help you navigate the nuances of this credit. Our approach will provide the necessary documentation to properly claim and sustain the ERC credits you are due. The assessment is complimentary. Fees are contingent and only applicable if your company moves forward in successfully claiming the ERC.
ERC STUDY PROCESS:
- Gather financial information
- Confirm the company's eligibility for the ERC
- Determine any government or local orders that would have provided for partial or total suspension of operations
- Review of gross receipt history
- Assess FTEs
- Review qualified wages and confirm credit potential
- Coordinate with HR on payroll details
- Use technology-based solutions to summarize impacted employees
- Confirm FTEs and compute quarterly qualified wage payments
- Coordinate with CARES Act loan programs and other tax credits to ensure no double-counting
- Calculate quarterly ERC
- Assist with the procedural requirements to claim credit
- Document project methodologies and qualifications
- Assemble final deliverable
- Audit support included