The Employee Retention Tax Credit (ERTC) is an IRS tax credit designed to help small businesses retain their employees during these difficult times. The credit refunds payroll costs already spent. It is not a loan, and there is no need to pay it back. Any business structure can potentially qualify, including non-profits and start-ups.
In order to qualify for the ERTC, your business must have been affected in one of two ways:
Decline in Gross Receipts over a Declared Quarter: Over any declared quarter in 2020, a decline of 50% or more must be shown to claim the credit; however, the credit is capped at $5,000 for the year. In 2021, the credit was expanded for businesses that only experienced a 20% reduction in revenue.
Complete or Partial Closure of the Business: All across the United States, local government restrictions and mandates were put into place, forcing some business to reduce operations or even close down entirely.
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We Calculate Your ERTC
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Are you eligible for the ERTC?
Qualify even if you received PPP funding
Any industry is eligible, and includes start-ups and non-profits
Mandated restrictions on your business
Frequently Asked Questions:
The ERTC (Employee Retention Tax Credit) is a refundable payroll tax credit designed to help businesses, impacted by COVID-19, to retain their employees. It was signed into law on March 27, 2020, as part of the CARES Act. The bill was significantly expanded in 2021.
In 2020, a credit is available for up to $5,000 per employee, from 3/12/2020 to 12/31/2020, by an eligible employer. In 2021, the ERTC increased to $7,000 per employee per quarter for Q1, Q2, and Q3. That is a potential of up to $26,000 per employee.
Start-up businesses that began operations after February 15, 2020, can take a credit of up to $50,000 in both the third and fourth quarters of 2021, for a maximum credit of $100,000.
You may be eligible if you meet one of the following requirements:
1) Your company experienced a reduction in gross receipts; or
2) A government-ordered mandate forced your business to reduce operations.
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