Employee Retention Credit
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Considered First Financial Corporate Resources (FFCR) your tax incentive specialists. Our goal is to help our valued clients realize the best possible outcomes for the business they conduct.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into to law on March 27, 2020. It provides economic relief to businesses and individuals. $370 billion in funding became available as a stimulus package to small companies. It has a provision that allows certain employers to claim a tax credit for keeping employees during the pandemic.
Employee Retention Credit (ERC)
The employee retention credit (ERC) – enables qualifying employers to claim a payroll tax credit for retaining employees during the pandemic. If the employer is eligible, they can claim a credit against 50% of the wages they paid per quarter, up to $10,000 of qualifying wages per employ annually paid between March 13,
2020 and December 31, 2020. The credit maximum for 2020 is $5,000 per employee.
The ERC was extended from January 1, 2021, to September 30, 2021, through the COVID-19 Relief Package, signed into law in December. Qualifying employers can claim a credit against 70% of the wages they paid per quarter, to a limit of $10,000 of qualifying wages per employee. $21,000 is the maximum allowed credit per employee for 2020.
How Can Your Business Qualify?
You can qualify for the ERC via two paths:
First: You experienced full or partial suspension of business operations as a result of a government order.
Second: The business suffered a significant decline in revenue compared to same quarter in 2019.
For 2020, the decline in revenue must be equal to or greater than 50%, and for 2021, a decline of 20% or greater compared to the same quartering 2019.
How Do Eligible Employers Obtain Their ERC?
FFRC works with the eligible employer to review the appropriate financial records and calculate the dollar amount of the projected credit.
The FFCR team will complete and file the correct IRS forms on the qualifying employer’s behalf. We will also prepare and retain all supporting documentation.
It Takes 3 Easy Steps to get Paid
STEP
1
Submit documents for calculation
Submit your documents to our team of experts and they will calculate the amount you qualify for with your employee retention tax credit.
STEP
2
Amend your returns
Our team will prepare and audit all your documents and assist with your filing the 941x amended returns.
STEP
3
Get Paid
You will receive a check directly from the IRS. Let us help you get your employee retention tax credit today.