Eligible employers are those who have experienced either a full or partial suspension of their business operations due to a governmental order related to COVID-19 (2020 - 2021), or have experienced a significant decline in gross receipts.
The ERC timeframe extends through 2020 and 2021:
2020: March 13, 2020 through December 31, 2020.
2021: January 1, 2021 through September 31st, 2021
No, employers are not required to pay employees in order to get the Employee Retention Credit. However, the credit is only available for wages paid to employees.
No, the Employee Retention Credit is a refundable tax credit and does not have to be paid back.
The Employee Retention Credit, also known as the ERC, was introduced to reward businesses for keeping employees on the payroll during those unpredictable and tumultuous times.
Yes, you can claim the Employee Retention Credit (ERC) and the Paycheck Protection Program (PPP). The ERC is designed to help employers of all sizes and certain tax-exempt organizations offset the cost of retaining employees, while the PPP provides loan forgiveness for certain expenses such as payroll costs, rent, mortgage interest, and utilities. You can use both programs together, as long as you don't double dip on expenses.
Yes, the Employee Retention Credit is refundable. This means that you can receive the credit even if you don't owe any taxes for the year. The refundable portion of the credit is equal to the amount of the credit, up to 50% of the employer's qualified wages per employee.
No, the Employee Retention Credit is not taxable. This means that you will not have to pay taxes on the amount of the credit that you receive. However, the credit is subject to payroll taxes, such as Social Security and Medicare taxes, and any wages paid with the credit are subject to those taxes as well.