| The Employee Retention Tax Credit (ERTC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible W2 employees. The refundable credit is available from March 13, 2020 through September 30, 2021, and can be utilized even if companies received PPP loans. WHO IS ELIGIBLE FOR EMPLOYEE RETENTION TAX CREDIT? Employer qualification for the ERTC is determined by one of the following criteria — and one of these factors must apply in the calendar quarter the employer wishes to utilize the credit:
- Have had their operations fully or partially suspended or had to reduce business hours due to orders from a governmental authority.
- Suffer a significant decline in quarterly gross revenue as measured against 2019.
- Recovery Startup Business – 3rd and 4th quarter 2021 only.
- Have begun carrying on trade or business after Feb. 15, 2020
- Have annual gross receipts that do not exceed $1 million
- Not be eligible for the ERTC under the other two categories
THINGS THAT QUALIFY YOU FOR THE ERC INCLUDE: - Supply chain disruptions
- Time taken away from shifts to clean/sanitize
- Time to wear PPE
- Federal, state or local mandates required your business to fully or partially shut down
- Limitations on the number of people you could have in a room or building
- Inability to attend normal networking events
- Disruptions to your sales force’s ability to function normally
- Limited capacity to operate
- Inability to work with vendors
- Reduction to the services or goods offered to customers
- Reduction to the hours of operations
- Shifting of hours of operations to increase facility sanitation
- Delayed or canceled projects due to Covid related disruptions
- And more…
Visit www.erc-facts.org to see if you qualify, and to schedule a time to speak with a CPA.
Sincerely, ERC Facts (602) 644-1733
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