IMPORTANT UPDATES TO THE

EMPLOYEE RETENTION CREDIT (ERC)

Updated legislation under the CARES Act was signed on December 27th, 2020 that significantly affected the ERC and may have changes that could greatly impact your company’s bottom line.

 

Under the prior legislation, there were certain limitations for business owners when trying to claim the credit.

However, the new legislation:

  • Enables companies that took the PPP Loan to now qualify for the ERC,

  • Increases the credit from 50% to 70% of qualified wages,

  • Increases the limit on per-employee creditable wages from $10,000 for the year to $10,000 for each quarter.

 

Most importantly, the American Rescue Plan, signed into law on March 11th, 2021, extended the Employee Retention Tax Credit through December 31st, 2021.

 

To be eligible, your business must have been fully or partially suspended by government orders OR experienced a reduction in year over year gross recipients of 50% in 2020 or 20% in 2021.

HOW WE CAN HELP YOUR BUSINESS

  1. We will work to determine your company’s eligibility based on full or partial suspension OR through your gross receipts.

  2. We will work to determine your company’s eligibility even if you’re an essential busines or did not see a decrease in review.

  3. We will review your required payroll information and PPP wages.

  4. We will work to determine your credit availability and deliver an audit ready package.

  5. We will look for other credit opportunities to maximize potential savings.

DETERMINE IF YOUR BUSINESS QUALIFIES HERE: