Employee Retention Credit (ERC)

What is the Employee Retention Credit (ERC)?

The Employee Retention Credit (ERC) has emerged as one of the biggest and most overlooked COVID-19 related tax provisions. Originally part of the CARES Act, the ERC has undergone multiple changes since it was introduced. Most importantly, the Consolidated Appropriations Act made the ERC available to employers that also received Paycheck Protection Program (PPP) loans.

How much money can I receive from it?

If eligibility criteria is met, credits are available for up to 70% of wages and health insurance premiums paid to each employee up to $10,000 for each quarter in 2021.

For example, if a Company has 100 employees the benefit can be up to $700,000 per quarter or $2,800,000 per year. If a Company received a second PPP loan the benefit may be reduced.

How do I know my business qualifies?

Employers are eligible for the ERC if they meet one of the following requirements:

  • The business experienced a 20% decline in revenue for any quarter of 2021 as compared to the same quarter in 2019.
  • The business experienced a 20% decline in revenue for 4th quarter 2020 compared to 4th quarter 2019.
  • The business was unable to operate due to a government shutdown.

Contact an Advisor

Frank Iannelli

Frank Iannelli
Strategic Consulting
Managing Director
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Chris O'Shell

Chris O’Shell
Strategic Consulting
Director
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Brad Parker

Brad Parker
Strategic Consulting
Director
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Jake Morris

Jake Morris
WP Edge Senior
Manager
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