- Human Resources
- Employee Management
- Insurance & Benefits
Take advantage of the ERC with our partner ERC Today and fill out the form below today to get started.
The Employee Retention Credit (ERC) is a fully refundable tax credit, created by the CARES Act.
The tax credit offsets all withheld federal employment taxes including federal income tax withholding, Employer FICA and Medicare.
Excess credit is refunded or advanced by the IRS. This program is not an "income tax credit" and is not related to your annual business tax returns. It is most frequently received as a cash payment from the IRS.
For the 2020 program, the ERC equals 50% of the qualified wages that eligible employers compensated their employees between 3/12/2020 and 1/1/2021.
Wages taken into account can not exceed $10,000 for all quarters. Thus, a total of $5,000 can be earned per employee.
For the 2021 program, the credit was increased to 70%, and the limit is $10,000 per quarter.
This means the annual maximum for an employee is $28,000.
Employers that carried on a trade or business during the calendar years 2020 / 2021, including a tax-exempt organization, and that meet one of the following requirements are considered eligible.
The business must have either:
The operation of a trade or business may be partially suspended by an appropriate governmental authority. Imposed restrictions must limit commerce, travel, or group meetings (for commercial, social, religious, or other purposes).
Suspension can be a "Stay at Home Order" for non-essential businesses, a capacity restriction, as well as other possibilities.
Qualified wages are all wages paid to an employee during an eligible period.
An eligible period is the time during which the business was suspended by government order, or:
For 2020: any calendar quarter during which gross receipts are 50% less than the same quarter of 2019.
For 2021: any calendar quarter during which gross receipts are 20% less than the same quarter of 2019
The ERC is accessed by filing a 941-X Amended Quarterly Payroll Tax return.
The IRS plans to accept these for up to three years after the initial filing, so the ability to participate in ERC program may continue into the end of 2024.
Employers who own separate businesses that meet IRS Controlled Group Criteria must be evaluated as a whole.
All businesses must pass the eligibility requirements, otherwise, none are eligible.
ERC is calculated and filed for each separate business.
Applying and the initial analysis to determine if you are eligible is free.
If afterward, you choose to file for an ERC with us, the fee is just a percentage of the credit you'll receive. We only get paid if you get paid.
In short, no. At least, your payroll company likely does not have all the needed information. Your CPA may not have the expertise to ask.
The benefit of an ERC specialist is you'll ensure you aren't leaving money on the table.
Use ERC Today's secure portal to upload your 941 returns, PPP loan documents, and raw payroll data.
ERC Today uses their expertise to calculate the exact value of the credit you can receive from the IRS.
ERC Today helps prepare and file the 941-X Amended payroll returns.
The IRS will process your credit and direct deposit or mail you a check.