Employee Retention Credits (ERC)


Employee Retention Attorney Serving Starkville, MS

As an employer, you may be eligible for the Employee Retention Credit if you’ve been affected by COVID-19. This credit is designed to help businesses keep their workers on the payroll.

What Are Employee Retention Credits?

The Employee Retention Credit is a refundable tax credit for eligible employers that helps offset the cost of keeping employees on the payroll.

Eligible employers can claim the credit for each eligible employee. The maximum credit per employee is $5,000.

How Do I Claim the Credit?

To claim the credit, you’ll need to file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. You can also request an advance payment of the credit from the IRS.

When claiming the credit, you’ll need to provide your employees’ Social Security numbers and dates of birth. You’ll also need to indicate how many weeks you are claiming the credit for.

If you’re eligible for the credit, you must reduce your allowable deduction for wages and salaries by the amount of the credit.

When Can I Claim The Employee Retention Credit?

The credit is available for wages paid after March 12, 2020 and before January 1, 2021.

What Are The Limitations of The Employee Retention Credit?

Employers who receive Paycheck Protection Program (PPP) loans are not eligible for the Employee Retention Credit. In addition, employers who have had their PPP loan forgiven are not eligible for the credit.

If you’re eligible for the credit, you must reduce your allowable deduction for wages and salaries by the amount of the credit.

Who Is Eligible for the Credit?

To be eligible for the Employee Retention Credit, you must have:

– Been in operation on February 15, 2020

– Experienced a decrease in gross receipts of 50% or more when compared to the same quarter in 2019

OR

– Been ordered by a governmental authority to suspend operations due to COVID-19

Eligible employers can claim the credit for each eligible employee. The maximum credit per employee is $5,000.

To be eligible for the credit, employees must have:

– Been paid wages or salaries for qualifying work performed during the pandemic

– Not have been paid wages or salaries for more than $106,800 in 2020

Get Help Filing Your ERC Claim

Filing for Employee Retention Credits can be a complex matter dealing with the IRS. Let an experienced ERC attorney help you. Contact me today to learn more about how I can help you.

HOW CAN I HELP YOU?

13 + 1 =