Employee Retention Credits
If your business suffered from significant declines in revenue during 2020 and continuing into 2021, you should consider whether the Employee Retention Credit (ERC) is applicable for your business. You may be eligible for up to $5,000 per employee in 2020, and up to $7,000 per employee per quarter in 2021 as long as you qualify. We are hearing from many Companies that they were not aware of this credit or were not aware that obtaining a PPP Loan no longer excludes you from being able to claim the ERC (as long as you do not double-dip). This is a refundable credit, so if the credit is greater than the taxes you owe, you can receive a check for the difference.
Here is a summary of some of the key parts of the Employee Retention Credit:
(1) Wages included in PPP loan forgiveness are not eligible wages for the ERC. Because of this, it would likely be prudent for companies to utilize the ability of loan forgiveness to apply to non-payroll costs such as rent, utility payments, operations expenditures, supplier costs, and worker protection expenditures up to 40% of your loan amount.
(2) If you were over 100 employees in 2020, you may still qualify for wages paid to employees not providing serves
If you feel that your business may qualify for this credit, please do not hesitate to reach out to us to discuss your specific situation.
We at TJ Advisors are committed to bringing you the most relevant and up-to-date information in an effort to help your business stay on track during this period of uncertainty. Please note that not all provisions, exceptions, exclusions, and special circumstances are included in order to maintain brevity. Please reach out directly so that we can provide the business support you need in these unprecedented times. We are here for you, contact us today at firstname.lastname@example.org or 972-629-9164.