Employee Retention Credit (ERC)
A Stimulus for Your Business
The Employee Retention Credit (ERC) is a tax credit available for small business owners, LLC’s, S-Corps or 1099 employees. Similar to the $1,200 stimulus check taxpayers received, this credit is designed to help small businesses during these trying times.
The ERC is not a loan, it is a tax credit, meaning that it does not have to be repaid. In the first stimulus, businesses were only allowed to claim one of the PPP or the ERC, not both. That rule has been changed, and now businesses can claim both funding opportunities, providing much-needed relief and help.
Benefits of the ERC
It’s not a loan
You don’t need to worry about paying this back, or tracking how you use it. The money is yours
Applying is easy
Our expert team will take care of all the details. We just need some information from you
Will not run out
Unlike the PPP, funding is unlimited. Anyone who qualifies and applies, will receive their credit
PPP is okay
The new stimulus package allows any business that claimed the PPP to also claim the ERC so take advantage of both!
How Do I Know If I Qualify?
The IRS will be looking for your business to meet one of two key factors to qualify for the ERC:
A decrease in revenue over a specified quarter. To retroactively claim the credit for 2020, you must show a decrease of 50% or more over any given quarter. For 2021, you only need to show a 20% decrease in revenue, and if this revenue decrease happens in both Q1 & Q2, you can claim the ERC twice.
A “Full or Partial” Closure of your business. This can include local governmental restrictions or mandates restricting the number of employees or customers in your workplace, disrupted operations (keeping 6 feet from clients), being forced to work from home, or completely closing your business operations for an extended time period.
Your business only needs to fit under one of the above restrictions in order to qualify for the ERC.