ERC Specialists

Since the outbreak of COVID-19, economies are still recovering from its effects. Many reports have suggested that the government has taken decisive action to contain and mitigate the spread of COVID and to limit the severe impacts on their economy.  In the United States, small business forms 90% of the country's economy, and the companies are also most severely affected by Covid-19. Like every other country, the governance in the United States is also trying to help its business stay afloat and preserve its status as a functioning business.  And once such an effort for the small business is the ERC or the Employee Retention Credit. It is one of the efforts of the government to restore its economy for its employers.  Employee Retention Credit-Explained  Amidst the Pandemic wave, the government introduced the CARES Act. The act introduced several programs for businesses and families to aid the effects of COVID. And one such program is the ERC. ERC aims particularly on small businesse

  The Employee Retention Benefit (ERC) is a tax credit offered to small business owners, S-Corps, LLCs, and 1099 workers. This benefit, like the $1,200 stimulus cheque taxpayers got, is intended to assist small companies during these difficult times. The ERC is not a loan. It is a tax credit, i.e., it does not have to be returned. Businesses could only claim one of the PPP or the ERC in the first stimulus, not both. That regulation has been modified, and firms may now apply for both financing possibilities, giving much-needed relief and assistance. This means you can apply for Employee Retention Credit even if you have applied for PPP.  The Employee Retention Credit is a fully refundable tax credit for employers equivalent to 50% of eligible salaries (including allocable qualified health plan expenditures) paid by Eligible Employers. This Employee Retention Credit is applicable to eligible salaries earned on or after March 12, 2020, but before January 1, 2021. What Paperwork Must I Co

  PPP loan and ERC are different tax relief provisions under the CARES Act. Both of these loans provide an opportunity for small business owners to avoid permanent closers.  An employer can benefit from these loans once they have qualified under the imposed condition to apply for these loans.  Both of the loans were mainly targeted to help the small business owners, so sometimes employers wonder whether they can get the benefits of both loans. If you wonder about it too, the answer lies under section 206 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020. What Does The Taxpayer Certainty And Disaster Tax Relief Act Say? Under the law, an employer eligible for the ERC can claim the credit, even if the employer already has received a Small Business Interruption Loan under the PPP.  But there is a condition that all the employer looking to claim both of the loans needs to understand, and that is-  The eligible employer can only claim the ERC or any qualified wages that have not