What is the Employee Retention Credit?
The Employee Retention Tax Credit has been one of the most important pandemic relief programs introduced to help employers negatively impacted by government pandemic orders. Furthermore, the changes to ERC eligibility requirements have opened the program to a wide range of businesses that were previously disqualified.
The ERC program expired in September 2021, but businesses can still apply for the credit retroactively. Businesses should determine their eligibility and take advantage of the remaining ERC opportunities.
Moskowitz LLP has obtained over 1 Million dollars ($1,000,000.00) in Employee Retention Tax Credits for its clients and we are not slowing down. Our services include a secure, fast and streamlined processed managed by a team of tax professionals to determine business qualifications, submitting the claims, and maintaining compliance.
Check out our video discussing the Employee Retention Tax Credit
A little more about the Employee Retention Tax Credit
When the ERC program was originally launched in 2020, it provided a refundable payroll tax credit for up to 50 percent of the first $10,000 in qualified wages per employee. Therefore, the maximum ERC for 2020 was $5,000 per employee.
Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, the ERC was extended for wages paid for the first three quarters of 2021 and was increased to a maximum tax credit of $7,000 per quarter per employee.
Also, under the CARES Act, employers had the option to receive assistance either through ERC or Paycheck Protection Program (PPP), but not both. That changed under the Consolidated Appropriations Act of 2021, which permitted recipients of PPP loans to also participate in the ERC (with certain restrictions), allowing employers to benefit from both programs.
ERC eligibility requirements include:
- Employers who had to stop operations fully or partially due to COVID-19 government orders. The credit applies only for the portion of the quarter the business is suspended, not the entire quarter,
- Employers who had a significant decline in gross receipts caused by COVID-19 in 2020 or 2021 compared to 2019 gross receipts, and
- Recovery startup business, a category added by the American Rescue Plan for the third and fourth quarters of 2021. See our blog post on Recovery Startup Businesses: Claiming the Employee Retention Tax Credit
How Do I Claim the Employee Retention Tax Credit?
To help determine whether you qualify for the Recovery Startup Business ERC, we suggest you work with a professional familiar with business tax law and any recent changes to the ERC. Here at Moskowitz LLP, we’ve built our reputation helping clients like you get the most out of their returns. Our experienced accountants and tax professionals can also help guide you through the paperwork necessary to apply for special programs and credits like the Recovery Business Startup ERC.
To learn more about how Moskowitz LLP can help you claim credits like the ERC, check out our recent webinar on the Employee Retention Tax Credit.
There is no charge for a consultation regarding the Employee Retention Tax Credit. Please contact us today.
Remember a blog post or email blast is not a substitution for obtaining personal legal and tax consultation. This information is not intended to be legal or tax advice nor does it form an attorney-client relationship between us.