What Is the Employee Retention Tax Credit?

The Employee Retention Tax Credit (ERTC) represents, for many, the single largest small business stimulus in US history behind PPP loans. However, because PPP loans understandably got all the attention in 2020 and early 2021 with PPP 2nd-draw, many businesses don’t understand how the tax credits work, how much stimulus is available, and how to get it.

The Employee Retention Tax Credit was introduced as part of the CARES Act and included tax credits for businesses to retain employees during the pandemic. The  ERTC is a refundable tax credit that can be claimed when eligible employers report their total qualified wages for purposes of the  ERTC for each calendar quarter on their federal employment tax returns. Due to new legislation, employers can now retroactively obtain both a PPP Loan AND claim the ERTC. 

How Much ERTC Stimulus Can You Receive?

2020 Retroactive Credits:

The 2020 CARES Act established an employee retention credit of 50% of $10,000/employee in qualified wages for eligible businesses or $5,000 tax credit per employee.

2021 Credits:

The 2021 credits total 70% of wages up to $10,000 per employee per quarter. The result is a credit up to $7,000 per employee for up to four quarters in 2021 totaling $28,000.

How Can We Help? 

If your company is eligible for ERTC, we can assist with calculating the credits and filing amended payroll tax returns that allow you to claim your credits with the IRS. With this service, we will take care of all of the following: 

1.    Review Qualified Wages

2.    Calculate Credit Amount

3.    File Amended Returns

Get started today!