Have you checked to see if you qualify for up to $26,000 per employee in tax credits for the W-2 employees you kept on payroll in 2020 and 2021?

What is ERC?

Congress enacted it to help small and medium-sized businesses that suffered economic harm related to the Covid pandemic during 2020 and/or 2021. Unlike much of the earlier federal Covid relief, the ERC is not a loan. It’s a tax refund that’s payable in cash — and it’s completely legitimate.Apr 7, 2023

Inside Indiana Business

Note: Even if you have closed your business, you may still qualify for the ERC if you had eligible employees in 2020 and/ or 2021.

Here are 10 facts about the ERC program:

1. The Employee Retention Credit (ERC) is a tax credit implemented by the US government to help businesses keep their employees on payroll during the COVID-19 pandemic.
2. The ERC is available to eligible employers, including businesses and nonprofits, who have experienced a significant decline in gross receipts or were forced to fully or partially suspend operations due to COVID-19.
3. Eligible employers can claim a refundable tax credit of up to 70% of qualified wages paid to employees, up to a maximum credit of $7,000 per employee per quarter.
4. Qualified wages include wages and health plan expenses paid to employees between March 12, 2020, and December 31, 2021, and between January 1, 2022, and June 30, 2022, for some employers.
5. The ERC can be claimed by businesses of all sizes, including those that received PPP loans, as long as they meet the eligibility requirements.
6. The ERC is claimed on the employer’s quarterly employment tax return (Form 941) and can be used to offset payroll taxes or applied for as a refund.
7. The amount of the ERC claimed cannot exceed the employer’s total employment taxes for the quarter, and any excess credit can be carried forward to future quarters or refunded.
8. Employers can work with their tax advisors or payroll service providers to determine their eligibility for the ERC and to calculate the amount of the credit they can claim.
9. The ERC can provide significant financial relief to eligible employers, allowing them to retain their employees and weather the economic challenges of the pandemic.
10. However, employers should be aware of the complex eligibility rules and requirements of the ERC and seek professional advice to ensure they are claiming the credit correctly.

Are you ready to speak with our ERC Agent to see if you qualify?

Complete the form below. We will contact you in 1-2 business days.