The Employee Retention Credit Made Simple
Background
Congress introduced the Employee Retention Credit (ERC) as part of the CARES Act as a refundable tax credit designed to help businesses affected by the pandemic.
Unlike a loan, the ERC is a grant that you’ll never need to pay back. Already received PPP? No problem – you may still be eligible to receive the Employee Retention Credit. Have any questions? Keep reading or contact us today.
Do I Qualify?
If you have 500 or fewer employees and your business was hurt by COVID-19, there’s a good chance you qualify. Some of the ways you can qualify include (but are not limited to):
- Changes in business hours
- Suspended operations
- Supply chain shutdowns
- Reduction in services provided
- Other significant changes to your business
Important Points to Remember about the Employee Retention Tax Credit
- Tax refund up to $26,000 per employee
- ERC available for 2020 and first 3 quarters of 2021
- Funds are only available for a short period of time
- ERC tax credits don’t need to be repaid.
