What is ERC?
As part of our Business Development strategy we can help with the Employee Retention Credit:
Employee Retention Credit (“ERC”) provides a wide variety of employers with lucrative refundable payroll tax credits for qualified wages paid to employees in 2020 and 2021.
This a payroll rebate for payroll taxes already paid on W2 employees.
It is not a loan or a grant or free money.
Where did the credit come from?
The CARES Act, 3/27/2020 (Coronavirus Aid, Relief & Economic Security Act)
•Paycheck Protection Program (PPP)
•Economic Disaster Loans (EIDL)
•Deferral of ER Social Security Taxes
•Employee Retention Credit
At the time if you received a PPP loan you could not receive the ERC.
The Consolidated Appropriations Act, on 12-27-2020 made two major changes to the ERC.
Retroactive – Employers can now claim ERC even if they had a PPP loan. This made the ERC retroactive and employers can file an amendment for their taxes to receive the ERC for 2020.
It also extended the Credit into first 3 quarters 2021 with new higher limits on the credits.
•Original limits were $5,000 - $7,000 per employee.
•Higher Limits – Up to $26,000 per employee