The Employee Retention Credit
Important Update: Yes, You Can Still Apply For the Employee Retention Tax Credit - Read the Full Article in Forbes
Was your business harmed during the 2020-2021 pandemic? You might qualify for an Employee Retention Credit!
If eligible, you could receive up to $26,000 per employee regardless of your size or revenue.
What is the Employee Retention Credit?
The Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC), is a refundable tax credit for businesses and tax-exempt organizations. This federal program can help small and medium-sized businesses recover from a loss of revenue due to COVID-19 shutdowns and mandates.
Business that retained employees and lost revenue due to mandates, as well as businesses that began operations in 2020 or 2021, may be owed a credit. Due to the complexity of the ERC tax code and the announcement of a temporary IRS moratorium, many businesses have not claimed ERC refunds they are eligible for.
Deadlines:
Businesses Filing Claim for Q2-Q4 of 2020 - Submit Claims by April 14, 2024
Businesses Filing Claims for Q1-Q3 of 2021 - Submit Claims by April 15, 2025
Qualifications
Your business must meet one of the qualifications below:
Full or Partial Suspension of Operations
A federal, state, or local government shutdown order affected your business’ ability to operate in 2020 or the first three calendars quarters of 2021, or
Gross Revenue Reduction
Gross revenues or gross receipts during 2020 and 2021 declined on a quarterly basis versus 2019, or
Recovery Startup Business
During the third or for the quarters of 2021 your business qualified as a recovery startup business.
Program Summary
Credit available for up to $26,000 per W-2 employee
No limits on refund amount size with credits that could exceed tax bill
Businesses that received PPP may still qualify
Businesses with revenue losses due to government mandates and shutdowns qualify