Employee Retention Tax Credit (ERTC)
Employee Retention Tax Credit
An employer in ANY trade or business, including tax exempt organizations, can claim a refundable payroll tax credit for a portion of wages paid during the coronavirus (COVID-19) crisis if (1) business operations were suspended due to a COVID-19-related shutdown order, (2) gross receipts declined by a certain percentage (50% for 2020; 20% for 2021), or (3) is a Recovery Startup Business ("RSB") that is not eligible based on (1) or (2), started business after February 15, 2020 and has less than $1M average gross receipts ((max credit $50K per quarter/$100K total)
Our ERTC Services
- State Tax Solutions (STS) requests and reviews applicable documentation from employer, payroll processor or PEO [Payroll, Benefits, PPP, FFCRA]
- STS calculates employee and total employer level quarterly adjustments
- STS assists with amendments and documentation
- Fees based on refunds received
2020 Credits
- The employee retention credit applies to wages paid after March 12, 2020 through December 31, 2020, generally for employers with less than 100 employees in 2019
- For each employee, the employer can claim a credit up to $5,000 for the year (50% of qualified wages capping at ANNUAL limit of $10,000)
2021 Credits
- The employee retention credit applies to wages paid
from January 1, 2021 through September 30, 2021, generally for employers with less than 500 employees in 2019
- For each employee, the employer can claim a credit up to $7,000 per calendar quarter (70% of qualified wages capping at $10,000 per QUARTER)
