Stimulus: Employee Retention Credit 3.25.21

EMPLOYEE RETENTION CREDIT (ERC)

As part of the new stimulus bill, the Employee Retention Credit was recently introduced by Congress to reward businesses that kept employees on payroll during the pandemic. This credit provides cash infusion to qualifying businesses! 

WHY HAVE I NOT HEARD ABOUT IT?

The Employee Retention Credit was just signed into law on December 27, 2020 with the Consolidated Appropriations Act of 2021.

HOW DO I QUALIFY?

There are two (2) main qualfications for the Employee Retention Credit. The business needs to have:

•    Been partially or fully shutdown; or

•    Have been impacted by the pandemic (20% decline in revenue from 2019)

In addition to businesses, non-profits can also claim this credit. 

WHAT IS THE CREDIT WORTH?

Across all relief benefits available to U.S. businesses, the Employee Retention Credit could eliminate your payroll tax and potentially generate an instant cash refund.

The size of your company, impact endured by the pandemic, and incentives claimed by the business can all influence the value of the benefit you receive.

The key here is that the Employee Retention Credit can now be claimed alongside other 

payroll-based incentives, including: • PPP      • WOTC      • Section 41 (R&D)

Maximize value for your business by having all of the above incentives reviewed together. Claiming each relief program independently without considering the impact of the other measures can lead to significantly reduced benefit to your business.  

The deadline to enroll is April 30. Talk to one of our consultants today to get started.