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ERTC

Employer Retention Tax Credit
Easily Apply and File for ERTC
The 411 on ERTC

The Payroll Protection Program became the primary focus for business financial relief when the Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed in March 2020. The program's objective was to quickly provide financial assistance to small businesses affected by COVID-19, particularly during the Spring 2020 government-mandated business closures. Business owners could simply work with their local bankers to apply for and obtain a loan because the application process was quick. Loan forgiveness was simple for the majority of small businesses later in 2020.

However, the Employee Retention Tax Credit (ERTC) was an additional program included in the CARES Act. Businesses impacted by the COVID-19 pandemic may benefit from this credit, which has the potential to provide much-needed additional funds. The Employee Retention Credit was given to businesses that were still working to keep their employees, or to a slightly larger group of businesses that paid employees to not work while they waited for government shutdowns to end.

The eligibility requirements for the ERTC have undergone two revisions over the course of the past year. As a result, a greater number of businesses are now eligible to receive the credit. Let's find out more about the Employee Retention Tax Credit, including how it works, who qualifies, and how much money could be at stake.

COVID-related laws that set rules for ERTC

3 major pieces of legislation establish the rules governing the ERTC

  • Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, enacted March 2020
  • The Consolidated Appropriations Act (CAA), enacted in December 2020
  • American Rescue Plan Act (ARPA) enacted in March 2021

How much ERTC can I recieve?

There could be a significant amount of money available through ERTC for your small or medium-sized business if it meets the requirements. The various pieces of legislation have altered the credit's amount.

Under the CARES Act, owners of businesses with 100 or fewer employees can take 50 percent of the first $10,000 in wages and health benefits paid to employees from March to December 2020. Therefore, in 2020, the maximum credit that an employee can receive is $5,000. You may still be eligible to claim this credit if your company is willing to submit amended 2020 returns.

The ERTC was extended to January through December 2021 by the CAA and ARPA, and the credit amount was increased. Businesses can now claim up to $28,000 per employee in 2021, or 70% of the first $10,000 in qualified wages for each employee in each quarter. As you can see, that can add up to a lot of money, whether you have 10, 50, or more employees:

If you have 10 employees: (10 emp) * ($5k + $28k)  = $330,000

If you have 50 employees: (50 emp) * ($5k + $28k)  = $1.65 million

How can we help?

  • Review Qualified Wages
    With your payroll data, we will identify eligible wages – including qualified health plan expenses
  • Calculate Credit Amount
    We will calculate eligible ERTC wages - taking into consideration the dates of your PPP loan
  • File Amended Returns
    We will process the credits in our payroll system for audibility and file the necessary amended tax returns