Can Your Business Qualify for the Employee Retention Credit?

Understanding Employee Retention Credit (ERC) is vital to staying on top of one’s finances. ERC is a refundable federal tax credit that was designed to encourage employers to keep employees on payroll during the pandemic. Between March 12 to December 31, 2020, up to $5,000 ERC was made available per employee to ensure relief from the pandemic’s difficulties. Because of this, if one’s business suffered from COVID-19, they may still qualify for credit up to $26,000 per employee.

What is the Employee Retention Credit?

The ERC was designed to help businesses at its very core, helping those affected to recover, make up for lost revenue, and continue to retain employees. Although the program officially ended in 2021, it is still possible to file to receive funds. In fact, most businesses who qualify for the Employee Retention Credit are not even aware of the benefits they are missing out on. As long as one’s business was affected by COVID-19 and is operating in the United States, there is a large chance that filing for ERC may be a game changer. In the case that a business experienced a suspension from the government, or qualified as a recovery startup business at the end of 2021, they are even more likely to benefit from ERC. From supply chain shutdowns to a limited workforce, the impacts of COVID are widespread and deserve compensation to reflect that.

It is also important to take into consideration the smaller requirements that businesses must meet to reap the benefits of the employee retention credit program. Credit amounts are based on whether an employer had more or less than 100 or 500 average full-time employees in 2019. It also takes anywhere between 4-10 months on average for the IRS to process ERC claims and mail checks. 

How Your Business Can Qualify

These small and complex requirements can make many businesses unsure of how to proceed with receiving their benefits. Fortunately, many services have dedicated their efforts to guiding others through the process of getting started with ERC. Reliable and qualified experts are now helping to provide helpful information, prepare necessary documentation, and even complete a business’ ERC filing to maximize returns. 

Conclusion

With the support of consultations, simple document uploading, and up to date reviews on the pandemic’s lasting impact, businesses no longer have to be left in the dark about benefits that they are entitled to. The time is now to find out if one qualifies for ERC benefits, allowing thousands across the nation to feel the relief of a post-pandemic world.