Employee Retention Credit (ERC)
During the COVID-19 pandemic, widespread economic hardships affected American businesses and the employees they depended on. Starting in spring of 2020, many companies were compromised by continued lockdowns, operating restrictions, and reduced clientele.
To offset some of the economic fallout endured by both large and small businesses, the Federal Government passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. This legislation set aside $2.2 trillion in economic stimulus to help businesses, employees, and American citizens who were impacted by the unprecedented effects of the pandemic.
Within this stimulus bill, a fully refundable payroll tax credit known as the Employee Retention Credit (ERC) was legislated to aid businesses that held onto their employees despite the economic uncertainties.
Do You Qualify for ERC?
If your business was impacted by the economic hardships of the pandemic but continued to retain your W2 employees, you could qualify for payroll tax credits of 50% per employee for wages up to $10,000.
These credits are available to all employers no matter how big or small their business and even tax-exempt organizations are eligible.
If your business was suspended by government order between Q4 2020 and Q3 2021, or if your quarterly gross receipts declined by 50% year-to-date, you may have a strong case to claim this ERC payroll tax credit.
At Fears Law, we’ve been hard at work studying the implications of this legislation and we’re committed to getting our clients their full tax credits and reimbursements by examining each business on a per-case basis.
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If you retained your W2 staff in the face of unprecedented economic circumstances during the COVID-19 pandemic, you could qualify for tax credits even if you’ve already filed your return. Contact Fears Law today for your free consultation and case review.