What is the Employee Retention Credit?
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Covid relief for small business
The ERC was designed by Congress to give financial relief to small businesses after the pandemic. Most business owners don’t know about it, or assume they won’t qualify, but the requirements are actually very simple. If you had to modify your business during Covid, you probably qualify for the ERC.
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Similar to PPP
Everyone knows about the Paycheck Protection Program, but not as many people have heard of its sister, the ERC. PPP gave a lot of businesses immediate relief during the pandemic. The ERC can give your business relief after the pandemic.
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Retroactive
You can still claim the ERC for tax years 2020 and 2021. All you have to do is meet a few requirements and document your payroll. If you had W-2 employees in those years who received wages, you probably qualify.
What if I took PPP?
Even if you took out a PPP loan (even if it was forgiven), you may still be eligible for the Employee Retention Credit. You just can’t “double dip,” which means you can’t count the same wages for both programs.
Worried you might not qualify? We’ll help you find out.
Does my business qualify?
There are two major ways to qualify for the Employee Retention Credit.
Reduced revenue in 2020 or 2021
Maybe your business made more money during Covid. That’s okay! You can still qualify under the second option.
Modified operations due to government orders
What if your business didn’t close? You can still qualify for the ERC if government mandates affected your day-to-day operations.
For example: social distancing meant fewer customers in the store; disrupted supply chains meant fewer products; working remotely disrupted your normal workflow. And the list goes on…
Ready to talk?
