EMPLOYEE RETENTION TAX CREDIT (ERTC)

Business Owners May Receive Up to $26k Per Employee If They Qualify

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The Employee Retention Tax Credit (ERTC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The refundable credit is available from March 13, 2020 through September 30, 2021, and can be utilized even if companies received PPP loans.

Who is eligible for Employee Retention Tax  Credit?

Employer qualification for the ERTC is determined by one of the following criteria — and one of these factors must apply in the calendar quarter the employer wishes to utilize the credit:
 

  1. Have had their operations fully or partially suspended, or had to reduce business hours due to orders from a governmental authority.
     

  2. Suffer a significant decline in quarterly gross revenue as measured against 2019.
        50% decline for 2020 compared to 2019
        20% decline for 2021 compared to 2019

     

  3. Recovery Startup Business – 3rd and 4th quarter 2021 only.
        Have begun carrying on trade or business after Feb. 15, 2020
        Have annual gross receipts that do not exceed $1 million
        Not be eligible for the ERTC under the other two categories

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Can I still receive the ERTC If I claimed  a PPP Loan?

A common misconception is that PPP borrowers are ineligible for the ERTC, but this is not true. As long as your company meets eligibility requirements you can receive both the PPP and the ERTC.  Both claims can be filed retroactively even if you missed the original filing deadline

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