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The Employee Retention Credit, or ERC, is a refundable federal tax credit that was designed to encourage employers to keep their employees on payroll during the COVID-19 pandemic. This program was available for tax years 2020 and 2021, however, some businesses may still qualify for retention credit up to $26,000 per employee. This service was originally designed to help businesses recover, make up for lost revenue, and to continue business operations with adequate personnel. Although the ERC initiative ended in 2021, many businesses are still eligible to file for funding.
A business may meet several criteria that allow it to qualify for ERC. If there was decreased revenue or the business experienced a full or partial governmental suspension during the pandemic, it is likely they may qualify. Also, corporations that were considered a recovery startup business in the third or fourth quarter of 2021 are also being considered for compensation. The credit amounts being awarded are based on whether an employer had more or less than 100 or 500 average full-time employees in 2019. This means that ERC benefits are very unique and are evaluated on a business by business basis. HOwever, this has not stopped thousands of organizations across the country from receiving aid during and following the pandemic.
Getting started with ERC can be confusing. Luckily, there are many services that dedicate their efforts to helping businesses reap the benefits that they deserve. With the help of experts, businesses can receive help with paperwork completion, document uploads, and even payroll or pandemic impact reviews. With the proper guidance, businesses across the United States can start receiving benefits that they may have been unaware they even were entitled to.
