The Employee Retention Credit was created to encourage companies to keep employees on the payroll during COVID-19 restrictions. Though the program ended in December 2021, business owners can still claim a considerable amount of money. Do you know if your organization is eligible?
The ERC was established to support businesses and charities impacted by federal, state, and local government shutdown orders. So, it’s hard to find any company or non-profit that isn’t eligible. Still, here are three important considerations to help you determine your eligibility.
- Your business must have experienced a full or partial suspension of operations due to a federal, state, or local government order, OR
- A business must have also experienced a significant decline in gross receipts, which is defined as a decrease in gross receipts of more than 50% when comparing any quarter in 2020 to the same quarter in 2019. Or more than a 20% decline for 2021 compared to the same quarter in 2019.
- The size of your company also affects your eligibility. The credit is only available to businesses with less than 500 employees in 2021.
If your business meets these criteria, you may be eligible for the Employee Retention Credit. The ERC was designed to help those businesses impacted the hardest by the pandemic, so the rules are specific, and the application process can be tedious. It may even involve amending a tax return from a previous year.
Given the complexities of the program, it’s best to partner with professionals with experience and success navigating the process, like the Boris Benic and Associates team. Let’s talk today to be sure you are minimizing your business tax liability.