ERC Qualifications
At first sight, the general qualification may look easy. But in reality each case, each qualification appears to be very complex. For non specialized CPAs, it may lead to underestimated returns or un-qualifying your businesses.
Our mission is to ensure that our clients can receive a maximized benefit, up to $26,000 per employee.
How to qualify:
The ERC program is available to both, essential and non-essential businesses that suffered the effects of the Covid-19 Pandemic.
There are 2 main qualifications for the Employee Retention Credit.
The business needs to have:
- Been partially or fully shutdown
- Been impacted by the pandemic (at least 20% decline in revenue from 2019)
Nonprofits can also claim this credit.
Examples of impacts to help you determine your business’s eligibility for the ERC:
- Full shutdowns
- Partial shutdowns
- Interrupted operations
- Impossibility to access equipment
- Supply chain disruptions
- Reduced capacity to operate
- 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
Credit Amount for Each Employee
In 2020
- Refundable tax credit of 50% of up to $10,000 in wages paid per employee from 3/12/20-12/31/20 by an eligible employer. That is potentially up to $5,000 per employee.
In 2021
- ERC increased to 70% of up to $10,000 in wages paid per employee per quarter for Q1, Q2, and Q3. That is potentially up to $21,000 per employee.
- Startups eligible for up to $33,000
- Our team will fill the claims to get checks in your business mail from the IRS as quickly as possible.
