What is ERC?

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The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provides for an employee retention tax credit (Employee Retention Credit) that is designed to encourage Eligible Employers to keep employees on their payroll despite experiencing an economic hardship related to COVID-19.  

 

Eligible Employers can claim the Employee Retention Credit, equal to 50 percent of up to $10,000 in qualified wages (including qualified health plan expenses), on wages paid after March 12, 2020 and before January 1, 2021.  

 

Eligible Employers are those businesses, including tax-exempt organizations, with operations that have been fully or partially suspended due to governmental orders due to COVID-19 or that have a significant decline in gross receipts compared to 2019.*

 

https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-overview

 

 

Can I receive ERC even though I received PPP?

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Yes. Under section 206(c) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, an employer that is eligible for the employee retention credit (ERC) can claim the ERC even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program (PPP). 

 

The eligible employer can claim the ERC on any qualified wages that are not counted as payroll costs in obtaining PPP loan forgiveness. Any wages that could count toward eligibility for the ERC or PPP loan forgiveness can be applied to either of these two programs, but not both.*

 

https://www.irs.gov/forms-pubs/employers-may-be-able-to-claim-the-employee-retention-credit-and-have-a-ppp-loan

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How do I apply for ERC?

 

That is where we can help. 

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By clicking the link below, we will get you started on your way to receiving the tax credit you and your business deserve. 

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So what are you waiting for....

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