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ERC 101
Consolidated Appropriates Act of 2021 Expands CARES Act Employee Retention Credit
Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year 2020 and experience a “partial suspension” of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19. The coronavirus (COVID-19) outbreak has forced the cancellation of trade shows throughout the world and according to studies, airplane passenger numbers dropped by 60 per cent in 2020 as a result of the COVID-19 pandemic.
According to IRS FAQs, a business that can open (but with restrictions) would still be “partially” shut down due to a governmental order. For example, if a restaurant dining room normally has 100 tables, but due to “social distancing” orders, the restaurant is only permitted to have 50 tables, the employer is still subject to a partial shutdown order and would be eligible for the ERC.
We provide complete, rapid and uncompromising advice around Employee Retention Credits and will help you identify all the ways your business has had impact on commerce, travel and group meetings to qualify for ERC.
$26,000
Maximum Amount Per Employee (2020 & 2021) $5,000 for the current year of 2020. For the year 2021 the maximum amount available is $7,000 per employee for Q1 of 2021, $7,000 per employee for Q2 of 2021, and $7,000 per employee for Q3 of 2021.
70%
Of the first $10,000 in payroll costs covered by ERC/ERTC in Q1 and Q2 of 2021
Hire a professional and take the worry out of your ERC credit claim
We help create the business documentation related to partial suspension of operations
We file amended 941-X returns with the IRS as a paid preparer on your behalf