WHAT IS ERC?

● Employee Retention Credit

● Part of the CARES Act program

● IRS Tax Credit/Rebate Check - not a loan or grant

● There is no repayment or compliance

● There are no restrictions on usage of funds

● Reward for keeping employees on the payroll during Covid

 

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WHO QUALIFIES?

● Companies that paid W2 employees (not contractors) during Covid (2020-2021)

● Qualifying employees were paid in any of the following six quarters (Q2-Q4 of 2020 and/or Q1 - Q3 of 2021)

● Business can qualify for any or all of the six quarters above

● New businesses (started during Covid) are given an extra quarter of credit (Q4 of 2021)

● Up to 80% of all businesses with W2 employees may qualify

● Even companies that received PPP and/or EIDL can qualify (PPP wages are deducted)

● Designed for small and medium sized businesses (up to 500 employees for max credits)

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