ERTC (EMPLOYEE RETENTION TAX CREDIT) Does your Business Qualify? - ERTCpro.com
ERTC Is Your Business Qualified? - ERTCpro.com
The ERTC is a refund that rewards businesses up to $26,000 per employee.
The ERTC, was created by the (CARES) Act. The American Rescue Plan Act (ARPA), enacted in March 2021, amended and extended the credit and the availability through the end of 2021.
Employers can take advantage of the ERTC against federal employment taxes via qualified wages paid to their employees from March 13, 2020 to December 31, 2021. Businesses can retroactively claim the credit against past quarters.
The ERTC has a maximum credit of $5,000 per employee in 2020, and a maximum of $21,000 per employee in 2021.
Yes, you may qualify for $26,000 per W2 employee!
Private businesses or tax-exempt organizations that conduct a trade or business that experience one or both of the following criteria:
The business was forced to partially or fully suspend or limit operations by a federal, state or local governmental order
The business experienced a 50% decline in gross receipts during any quarter of 2020 versus the same quarter in 2019, and/or a 20% decline in gross receipts 2021 against the same quarter in 2019.
The ERTC is available to businesses of all sizes – there is no cap on employees, although it is easier for small businesses to take advantage.
FAQs
{✺ What if my business received a PPP loan?
You may still be eligible for the ERTC.
Note that you cannot use wages applied to the ERTC toward the forgiveness of a PPP loan. Consider applying non-payroll expenses toward your PPP forgiveness application so that you may maximize the benefit of both PPP forgiveness and the ERTC.
✺ Can I use qualified wages applied to the ERTC for other federal tax credits?
A business may not “double benefit” by utilizing the same wages for claiming the ERTC and:
Families First Coronavirus Response Act (FFCRA)
American Rescue Plan Act of 2021 Leave Credits
Work Opportunity Tax Credit (WOTC)
Research and Development Credit (R&D)
Forgiveness on a PPP loan
{✺ What if my business received a PPP loan?
You may still be eligible for the ERTC.
Note that you cannot use wages applied to the ERTC toward the forgiveness of a PPP loan. Consider applying non-payroll expenses toward your PPP forgiveness application so that you may maximize the benefit of both PPP forgiveness and the ERTC.
✺ What if I started my business during the pandemic?
Your business may still qualify under the traditional rules. However, if your business started in 2020, you will use 2020 as your comparison period when applying for the tax credit in 2021. You may also apply the suspension of operations qualifier as appropriate.
Recovery startup businesses cannot exceed average annual gross receipts of $1 million, and the total ERTC value is capped at $50,000 per quarter. Additionally, the Recovery Startup Business qualifier is only eligible for Q3 and Q4 of 2021.}