employee retention tax credit
Receive Up To $26,000 Cash Refund Per Employee
We’ve helped employers nationwide affected by the pandemic maximize their Employee Retention Credit Refund. We’re offering a completely free ERC evaluation. Learn how we can help you and book a free ERC evaluation. Find out if you qualify.
What is the ERC?
The Employee Retention Tax Credit (ERC) is a refundable payroll tax credit created to provide relief to business owners who kept staff employed during the pandemic. You can claim the ERC retroactively for tax years 2021 and 2020. You can get up to $26,000 for each employee!
The ERC is available to employers who experienced a decline in revenue or had to fully or partially suspend operations because of COVID-19 pandemic restrictions. If an employer’s business operations continued but were modified, the adjustment may be regarded as a partial suspension.
How to Apply
Navigating the ERC tax credit has been extremely challenging due to the many changes and revisions made over the last two years. Work with our ERC experts to maximize your ERC credits and ensure compliance with the most recent IRS ERC rules and regulations. Take action to get the funds you deserve while they are still available!
how we can help
Our ERC Experts Can Support You Each Step of the Way!
We’ve helped small business owners from the start of the pandemic obtain COVID relief benefits.
Determine ERC Eligibility
Receive a free initial ERC evaluation and estimate from our ERC experts.
Determine Qualified Wages
We analyze wages paid to each employee to determine qualified wages.
Accurately Calculate Credits
We calculate the maximum ERC credit and interplay with PPP or other credits.
Prepare Necessary Documentation
We can help compile documentation to demonstrate ERC eligibility.
Prepare Amended Tax Returns
We will prepare and help you file the 941-X Amended payroll return with the IRS.
Keep Business Compliant
We ensure you comply with all ERC rules and regulations.
Get started today
3 Steps to Claim Your ERC Credits
Free ERC Evaluation
Fill out the form below to request a Free ERC Evaluation. One of our ERC Specialists will help you determine eligibility. This evaluation is provided at no cost or obligation.
Submit your documentation through the Eco-Tax portal. Our ERC specialists will determine qualified wages, calculates credits, and prepares necessary tax forms.
Completed ERC documents are filed with the IRS. It may take 6 to 12 months for the IRS to process your claim. Once processed you’ll get a check in the mail for ERC credit.
Request a Complimentary ERC Evaluation for your Business or Non-Profit
Our ERC specialists help employers determine their ERC eligibility and provide them guidance on how to claim.
Frequently Asked Questions
Need some help with a question? Click below to see if we’ve already answered it. If you still can’t find an answer to your question, please give us a call at 866-968-4848 or email us at firstname.lastname@example.org.
The ERC is a refundable payroll tax credit created to provide relief to business owners affected by the pandemic. The refund is paid by the U.S. Treasury Department. This is not a loan and doesn’t have to be repaid.
Employers of businesses or tax-exempt organizations can qualify for the tax credit if they meet one of the following criteria:
- the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19
- If an employer’s business operations continued but were subject to modification as a result of governmental order, the modification can be considered a partial suspension of business operations when it had more than a nominal effect on the business operations.
- Some examples of governmental orders that caused the partial suspension of operations: limited capacity, reduced services, supply chain disruptions, reduction of hours, and closure for the cleaning and disinfecting of a facility.
- experienced a significant decline in gross receipts (revenue)
- it is a Recovery Start-up Business that began operations after Feb.15, 2020, and has less than average annual gross receipts of a million.
No, it may still be eligible. If the employer can demonstrate that business activities were partially or fully suspended, there is no need to demonstrate a decrease in revenue (decline in gross receipts). There are numerous ways that business operations may have been partially or fully suspended. If an employer’s business operations continued but were subject to modification as a result of governmental order, the modification can be considered a partial suspension of business operations. For instance, a modification in operations could include limited capacity (e.i. limitations on indoor dining space), postponed trade fairs and group gatherings, operational effects relating to important suppliers or clients, reduction in operating hours, and other nominal interruptions.
The 2020 and 2021 ERC credit is calculated differently:
2020 ERC. For the 2020 tax year, the ERC was limited to 50% of the first $10,000 of qualified wages paid to the employee from March 13, 2020, to December 31, 2020. This means that the maximum amount that could be credited back to the employer was $5,000 per employee.
2021 ERC. For the 2021 tax year, the ERC is equal to 70% of up to $10,000 in qualified wages paid to an employee, per quarter from January 1, 2021, to September 30, 2021. The maximum credit that can be claimed for each employee per quarter is $7,000. An employer could receive up to $21,000 credit for each employee in 2021.
The employer can get refunded up to $26K per employee when claim credits in 2020 and 2021.
Employers that had a 90% decline in gross receipt when comparing a calendar quarter in 2021 to the same calendar quarter in 2019 are considered to be “severely financially distressed “. These employers can count all wages regardless of the size of the business or the number of employees.
Qualified wages include all wages and qualified health plan expenses paid to full-time employees.
A full-time employee is an employee who worked an average of at least 30 hours per week or 130 hours or hours per month.
Smaller employers are allowed to include wages paid to employees who were working and to employees not providing services. Larger employers can only include wages paid to employees that were not working (not providing service).
Businesses that exceed the applicable threshold amount for the average number of full-time employees will be considered large for ERC purposes.
The applicable threshold amount is different for 2020 and 2021
- In 2020, businesses with more than 100 full-time equivalent employees are considered a large employer.
- In 2021, businesses with more than 500 full-time equivalent employees are considered a large employer.
A significant decline in gross receipts is calculated differently for 2020 credits and 2021 credits.
2020 ERC. For the 2020 tax year, a significant decline in gross receipts is calculated by determining the first calendar quarter in 2020, where the gross receipts are less than 50% of the gross receipts for the same calendar quarter in 2019.
2021 ERC. For the 2021 tax year, a significant decline in gross receipts is calculated by determining the first calendar quarter in 2021, where the gross receipts are less than 80% of the gross receipts for the same calendar quarter in 2019. If the business doesn’t have gross receipts from 2019, then they can use the same calendar quarter in 2020. Alternatively, employers may elect to compare the immediately preceding calendar quarter to calculate the decline in gross receipts.
Recovery Start-up Business (RSB) are eligible to apply for an ERC for the 3rd and 4th quarters of 2021. In order for a business to qualify as an RSB, it must meet the following criteria:
- It’s a trade or business that began operation after February 15, 2020.
- Its average annual gross receipts are less than 1,000,000.
- It does not meet the other eligibility criteria, such as full or partial suspension of operations or a decline in gross receipts (this criterion is not required for the 4th quarter)
Recently the Infrastructure Investment and Jobs Act limited the availability of 2021 4th quarter ERC credits to RSBs. In addition, the tax credit for employers of Recovery Start-up Business credit is limited to $50,000 for any calendar quarter.
Employers who received the Payroll Protection Program (PPP) loan can also apply for ERC credits for qualified wages that are not treated as payroll costs in obtaining forgiveness of the PPP loan.
Yes, businesses can still claim the employee retention tax credit retroactively for 2020 and 2021
Employers can claim the credit retroactively for wages paid from March 13, 2020, and September 30, 2021 (Jul. 1-Dec.31, 2021 for recovery startup businesses). Employers must file an amended employment tax return for the quarters it was eligible to apply for ERC. The filing deadline is April 15, 2024, for 2020 credits and April 15, 2025, for 2021 credits.
The IRS may take 6-12 months to process the Employee Retention Tax Credit claim.
Contact us to learn more and obtain a complimentary ERC assessment. You can also visit IRS website page for ERC.