Important Specifics Of Employee Retention Credit

What is the Employee Retention Credit?

Simply put, the Employee Retention credit (ERC), is exactly what it sounds. It rewards business owners for keeping employees on payroll during the pandemic. We are working closely with decision-makers in Washington on this nationwide effort to help the U.S. economy not only recover from the pandemic but come back stronger than 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

Claiming PPP affects how much ERC can be claimed

How to Qualify

Even if you have already reviewed the ERC, we recommend that you take a second look with one our specialists. The program is still not living up to its potential. Many business owners are disqualifying themselves prematurely due to misinformation about who qualifies and who doesn’t.

Businesses should focus on the overall theme of how the coronavirus virus pandemic affected our economy. This means that even if your company grew during the pandemic, you need to consider other factors before disqualifying 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.

These are some factors to consider when determining whether your business is eligible for the ERC.

Full shutdowns;

Partial shutdowns;

Operation interruptions

Supply chain disruptions

Inability to access equipment;

Limited capacity to operate;

Inability to work with your vendors;

Reduction in services or goods offered to your customers;

Reduce your operating hours.

Shifting hours to increase sanitation of your facility

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