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We can help your business apply for the Employee Retention Tax Credit (Government Tax Credit for Businesses).
What is the Employee Retention Credit (ERC)?
By now, many businesses have become aware of the Employee Retention Credit (ERC) that was
enacted as part of the CARES Act but initially considered an afterthought.
That changed when the Consolidated Appropriations Act that was passed in December not only eliminated the rule that
prevented PPP borrowers from receiving the ERC but also significantly expanded the credit for
2021.
Most recently, the American Rescue Plan Act extended the ERC through the end of 2021
and, given that the credit is up to $7,000 per employee per quarter, it’s hard not to get excited about
its potential benefit.
Given the completely new nature of many of the provisions of the ERC, it is understandable that
questions abound about qualification and calculation of the credit. Here we welp provide
answers to some of these questions and clears up misunderstandings.
What are the basic business qualifications to qualify for the credit?
United States Businesses with 500 employees or less the credit is for employees that remained on payroll during
Q4 2019 – Q4 2021.
This credit does not apply to the owner(s) and their immediate family.
Only regular W2 employees are included in the calculation of the tax credit.
The total amount paid to the business by the government can be up to $ 24,000 USD per
employee and even more depending on different situations. This is deposited directly into the business
account once the application is approved within 14-20 weeks.
