The Employee Retention Tax Credit (ERC) is a refundable tax credit designed to reward business owners for retaining employees throughout the COVID-19 pandemic. The Employee Retention Credit is available to both small- and mid-sized businesses. It was signed into law on March 27, 2020, as part of the CARES Act. The bill was significantly expanded in 2021.
Business owners impacted by COVID-19 can claim up to $5,000 in refundable tax credits for each employee on their payroll in 2020 and up to a $7,000 credit per quarter (excluding Q4) for each employee in 2021.
• If your business operations were impacted or changed during an applicable calendar quarter due to a COVID-19 related government order.
or
• For quarters in 2021, If your business revenue dropped by more than 20% compared to the same quarter in 2019 or the immediately preceding quarter.
“Businesses that received PPP loans in 2020 or 2021 can still claim the ERC”
The Employee Retention Credit is currently one of the largest credits available to business owners, delivering thousands of dollars in credits per employee with qualified wages. A manufacturing company with an annual revenue of $115 million and 246 employees received a credit equal to $1.06 million in Q1 of 2021. A few of their qualifying factors were:
• 20% drop in quarterly revenue;
• Numerous projects were canceled or delayed to COVID-related disruptions; and
• Delayed production timelines caused by supply chain disruptions.
Call MaxRefund.com today for a free no obligation consultation and see if you and your business qualify for The Employee Retention Credit.
