ERC Specialists

  The Employee Retention Credit (ERC) is a refundable tax credit introduced as a part of the CARES Act in 2020 to help businesses affected by the COVID-19 pandemic. Later, the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act of 2021 expanded the credit to cover more businesses. In order to qualify for the ERC, businesses must meet the ERC eligibility 2021 criteria. Let’s discuss who is not eligible for the ERC. ERC Uneligibility Government entities Government entities are not eligible for the ERC guidance. This includes federal, state, and local governments and any agency or instrumentality thereof. This exclusion also applies to any organization exempt from taxation under Section 115 of the Internal Revenue Code. Businesses that received a Paycheck Protection Program (PPP) loan With some exceptions, businesses that received a PPP loan are generally not eligible for the ERC. Under the original CARES Act, businesses could not receive both a PPP loan and the ERC.

Employers who suffered a large drop in revenue or were forced to drastically scale back or cease operations as a result of government COVID-19 orders may be eligible for the Employee Retention Credit (ERC), a Payroll Tax Relief . If you're planning on taking out a PPP loan in 2023 instead of applying for ERC, or if you haven't taken advantage of any federal COVID-19 relief programmes, you may be passing on "free money."    Consistent operation and growth of the ERC beyond 2021 merits careful thought. If you put in the time to investigate and organize, your organization could be eligible to receive hundreds of thousands of dollars in payroll support. (For instance, if you have 10 workers and can take advantage of the maximum credit on ERC-qualified earnings earned in 2020 and the first half of 2021, you might be able to get a payroll tax refund of $190,000.)   Program Updates That Can Help You Save Money Employees can receive payroll tax credits of up to $33,000 each