Important Information Regarding Employee Retention Credit

What is the Employee Retention Credit and how does it work?

Putting it simply, the Employee Retention Credit (ERC) is exactly what it sounds like–business owners are being rewarded for their efforts to keep employees on payroll during the pandemic. Washington decision-makers are closely involved in this national effort to help the U.S. recover from the pandemic and come back stronger than ever before.

Five Things You Need to Know About the ERC

To help you cut through the noise, we’re debunking the most common misunderstandings currently circulating in the ERC world. You should know that:

ERC is not for every business.

You likely can’t claim $26k for every employee

Not every COVID impact qualifies a business

Not every government guideline qualifies a business

How much ERC can you claim if you claim PPP?

How to Qualify

Even if you have already reviewed the ERC, we recommend that you take a second look with one our specialists. Unfortunately, the program is not yet living up to its full potential because many business owners are prematurely disqualifying themselves due to misinformation and rumors about who does or doesn’t qualify.

The overarching theme for businesses to focus on is how the coronavirus pandemic impacted our economy as a whole… so even if your business grew or was deemed an essential business during the pandemic, there are more qualifying factors to look at before you disqualify yourself.

The payroll tax credit is available to all essential and non-essential companies in any industry that has suffered the effects of the pandemic. Government orders–on federal, state, and local levels–are a major factor that many business owners had to adapt to over the last year and a half. One example of a affected business is a restaurant that couldn’t allow customers to eat indoors, or a manufacturer who had to slow down their operations because of new safety and health regulations.

Here are some impacts to consider that help you determine your business’s eligibility for the ERC:

Full shutdowns;

Partial shut downs

Interrupted operations;

Supply chain interruptions;

Inability to access equipment;

Capacity to operate is limited

Inability to communicate with vendors

Reduced services or goods provided to customers

Cut down on your hours of operation; and

Shifting hours can improve sanitation in your facility

To read more about erc help just go to our website: check