Employee Retention Credit Facts
The Employee Retention Credit (ERC) Federal Tax Refund Program was originally passed into law with the first U.S. COVID19 legislation, the 2020 CARES ACT. This law created, among other things, the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC). The CARES ACT required a business or non-profit organization to choose either the PPP or ERC program. You could not apply for both. Since the PPP program could get more money faster, most businesses and non-profits chose this option.
In 2021, the last federal COVID19 legislation called The AMERICAN RESCUE PLAN ACT was passed. This law revised the ERC requirements, making it possible to claim the ERC Tax Refund even if you had taken PPP loans, and made the ERC easier to qualify for.
The ERC program covers 7 quarters in 2020 and 2021 and with the last qualifying quarter being the 3rd quarter of 2021. For the 4 quarters in 2020, you could claim up to a maximum of $5000 per eligible W-2 employee. For the first 3 quarters of 2021, you could claim up to a maximum of $7000 per eligible W-2 employee for a total of $21,000 for 2021 or a total of $26,000 per eligible W-2 employee or both years.
Because the ERC Tax Refund is calculated by quarter, it is possible to qualify in one quarter and not in another. The ERC underwent several changes and has many technical details, including how to determine qualified wages, which employees are eligible, and more. Your business or non-profits specific case might require more intensive review and analysis. The program is complex and might leave you with many unanswered questions which our ERC Accounting Specialists are happy to answer for you. They have been filing ERC Tax Refund claims since the IRS began accepting them in December 2021 and have become experts in this program.
ERC USA can help make sense of it all. Our dedicated expert CPAs will guide you and outline the steps you need to take so you can maximize the claim for your business or non-profit. Many organizations are assisting with the filing of ERC Tax Refunds, charging anywhere from 15-30% of your total refund.
Our CPA Group charges a more reasonable 10% of your total refund and you don’t pay our fee until you have received your refund checks from the IRS!
Why not schedule a FREE, NO OBLIGATION call with one of our ERC Accounting Specialists to discuss your situation and eligibility for the ERC Tax Refund.