Employee Retention Tax Credit Assistance

Getting You the Credit You Deserve

The Employee Retention Tax Credit (ERTC), also known as the Employee Retention Credit (ERC), is a refundable tax credit provided to businesses and nonprofits that have been impacted by the COVID-19 pandemic and had to either fully or partially suspend operations or experienced a significant decline in gross receipts. The ERC was introduced as part of the CARES Act in 2020 and has since been extended and expanded by subsequent legislation.

How is the ERC calculated?

The ERC is calculated based on the wages paid to eligible employees during the relevant payroll tax period. The credit amount is equal to 50% of qualified wages paid to eligible employees, up to a maximum credit of $5,000 per employee in 2020, and is equal to 70% of qualified wages paid, up to $7,000 per eligible employee for the first three quarters in 2021.

Who is eligible?

To be eligible for the ERC, a business must meet certain criteria, such as experiencing a significant decline in gross receipts or a full or partial suspension of operations due to government orders related to the pandemic. The business must also retain eligible employees during the relevant payroll tax period.

What is the benefit of ERC Assistance services?

The ERC is a valuable tax credit that can help businesses offset the financial impacts of the pandemic, and can provide a much-needed boost to their cash flow. However, it is important to ensure that businesses comply with all eligibility requirements and documentation requirements to avoid potential  penalties or worse. Thompson Greenspon can help you navigate these requirements and ensure that your ERC is executed properly.