The Employee Retention Tax Credit, or ERC, is a fully refundable payroll tax credit available to companies that partially or fully suspended their operations due to COVID-19 or had a significant decline in gross receipts compared to 2019.
Designed to encourage businesses to keep employees during the pandemic, the credit allows employers to offset federal payroll taxes such as federal wage withholding and the employee’s share of Social Security and Medicare taxes.
The good news? Employers can still take advantage of the ERTC program retroactively.
In fact, employers have up to three years from September 30, 2021, to determine if they have qualified employee wages paid to employees after March 12, 2020.
We can help.
The Employee Retention Tax Credit (ERC) is a fully refundable payroll tax credit. This credit is available to businesses that partially or fully suspended operations due to the COVID-19 pandemic or experienced a significant decline in gross receipts compared to 2019.
The ERC allows employers to offset federal payroll taxes such as federal wage withholding and the employee’s share of Social Security and Medicare taxes. Employers may still qualify for the ERC if they received Paycheck Protection Program (PPP) loans for wages that were not paid for with forgiven PPP proceeds.
For additional information on the ERC, visit our blog:
In order to be eligible to claim the ERC credit, a business must meet at least one of the following requirements in the quarter for which they are claiming the credit:
In addition to these requirements for eligibility, employers must also meet the following eligibility criteria. An employer must also issue a formal payroll where they file Form 941s and W2s. Lastly, an employer must have under a certain number of full-time employees in 2019. To claim the ERC for 2020, this would require fewer than 100 full-time employees, and fewer than 500 full-time employees to claim the ERC for 2021.
Complete Payroll Solutions can help businesses navigate the process of claiming the ERC retroactively. Our service will:
In order for us to get started, please fill out the form on this page so that we can begin guiding you to the best solution to claim the ERC for your business.
Once we receive your completed form, our team will begin working behind the scenes to get the process started and will contact you regarding any additional information we will need.
Ready to file a claim for your retroactive ERC refund? Fill out the form on this page to get started!