The Employee Retention Credit (ERC) was a refundable tax credit created by the CARES Act to help small businesses keep their employees on the payroll during the COVID-19 pandemic. To be eligible, employers must meet certain requirements, such as having fewer than 501 W2 employees in the qualifying quarter or experiencing severe financial hardship. The ERC applies to both full-time and part-time workers, and the amount of the credit can often exceed what the employee would have earned without the pandemic. Business owners who weren't recovering startups weren't eligible for the ERC for wages paid after September 31. The ERC was initially confusing due to subsequent legislative changes, but now companies can use it even if they have already received cash from the Check Protection Program (PPP).
Disaster loan counselors can help businesses with the complex and confusing ERC and Employee Retention Tax Credit (ERTC) program. The government is allowing billions of dollars in economic stimulus through the ERTC program, but hundreds of millions of business owners will let most of this money go unclaimed. To make sure you don't miss out on this opportunity, schedule a free consultation to see how much of the ERC your company qualifies for.