The Employee Retention Credit (ERC) Up to $26K Per Employee
If your business was impacted by the pandemic, you likely qualify for this massive credit.
Our Expertise
An overview of this huge, but complex credit.
Origin
Congress enacted the ERC through the Coronavirus Aid Relief, and Economic Security Act (CARES) Act in March of 2020.
Overlooked
It was established at the height of the pandemic response. However, it was eclipsed by the Paycheck Protection Plan.
Parameters
Initially, the ERC had more stringent guidelines. Some restrictions were lifted in 2021 to provide relief to more employers.
Essential Industries
Employers in both essential and non-essential industries can qualify for the Employee Retention Credit.
Size
Employers of any size can qualify, but the guidelines are slightly different for eligibility if you have more than 500 employees.
Eligibility
If COVID affected your business, you likely qualify for the ERC. The Gross Receipts test is not the only way to qualify.
Evolution
From almost no one to almost everyone.
The most popular pandemic relief package (in March of 2020) was the Paycheck Protection Plan (PPP); and employers filed for the PPP right away.
When the ERC was first established, employers were not eligible if they had applied for the PPP. This restriction meant that most employers did not tap into the ERC.
Under the Consolidated Appropriations Act (CAA), the PPP restriction was lifted. However, many employers had already dismissed the ERC — which left billions on the table.
Complexity
Another hurdle between employers and the ERC.
The ERC was drafted with vague language and complex accounting. Because of this and the initial restrictions, many employers assumed it did not apply to them.
However, most are eligible for some portion of this credit. Even though it was repealed in the 4th quarter of 2021, employers can still file for the previous eligibility period. That could mean up to $26K per employee.
Still Want to Know More About the ERC?
Check out our white paper.
We created a white paper exclusively dedicated to the evolution and eligibility of the ERC. You can find it by clicking on the link below.
https://hiringincentivesinc.com/the-employee-retention-credit-erc/
Partnering with Hiring Incentives, Inc. & UC Alternative, Inc.
Just as doctors have specialties, and lawyers have areas of practice — our CPAs are experts in employer tax credits. We maximize even the most complex credits and we work almost exclusively in the healthcare industry.
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