COVID-19 has been a challenge for all of us. As the world shut down the economy came to a halt, leaving the future of many businesses in a precarious position. As we begin to find normalcy again, businesses now have to focus on recovering and fortunately, several government programs are easing this process.
One such program is the Employee Retention Credit or ERC, which is a generous stimulus program designed to bolster those businesses that we’re able to retain their employees during this challenging time. Due to the extremely complex tax code and qualifications, it is severely underutilized. Details of the program include:
- Up to $26,000 per employee
- For Businesses with 500 employees or less
- Available for 2020 & Q1 – Q3 2021
- Qualify with decreased revenue OR Federal, State or Local restrictions due to covid
- No limit on funding (The ERC is not a loan)
- ERC is a refundable tax credit