You may be eligible for Employee Retention Credits
Did you know?
Many small businesses can still claim thousands of dollars for 2020 and 2021 tax relief based on COVID- related shutdowns and disruptions? If your business:
- Has fewer than 100 employees and you kept your employees on the payroll.
- Was at least partly closed due to a government order or your revenue declined significantly in 2020 and 2021.
- If your business experience the following, you may be eligible for the credit
- Full and/or partially shutdown
- Interrupted operations and/or supply chain disruptions
- Impossibility to access equipment
- Reduced capacity to operate and/or inability to work with vendors
- Reduction in services or goods offered to customers
- Cut down on your hours of operation
- Shifting hours to increase sanitation of your facility
What is the Employee Retention Credit and how does it work?
The Employee Retention Credit, or the ERC, is a tax credit that refund payroll costs to help reduce the impact of retaining employees on payroll during COVID-19. The ERC was enacted through the CARES act. You can find more information on the IRS website.
If the amount of the tax credit for an employer is more than the amount of the employer’s share of social security tax owed, the excess is refunded – paid – directly to the employer.
Employee Retention in 2020
For 2020, the Employee Retention Credit is a tax credit against certain payroll taxes, including an employer’s share of social security taxes for wages paid between March 12, 2020 and December 31, 2020. The tax credit is 50% of the wages paid up to $10,000 per employee, capped at $5,000 per employee.
Employee Retention in 2021
The ERC is now available for the first three quarters of 2021, up to $7,000 per quarter. The level of qualifying business disruption has been reduced so that a 20% decline in gross receipts during a single quarter will make a business eligible, for a maximum yearly benefit of $28,000 per employee.
You may have more questions, and that’s okay. Please visit our FAQ
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Feel free to contact us if you would like to learn more or have any questions.
Email: Erccreditrefund@gmail.com
Phone: (951) 479-7422
ERC4Less 