
What is the ERC (Employee Retention Credit)?
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Authorized under the CARES ACT, as a refundable tax credit that you can claim for your business.
The ERC is available for small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
It is a stimulus program designed to help businesses that were able to retain employees during the COVID- 19 pandemic. The ERC can be as high as $5,000 per employee in 2020 and as high as $21,000 per employee in 2021.
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Do You Qualify for ERC?
To qualify, your business must have been negatively effected in either of the following ways:
✔ By government order, your business had fully or partially suspended operations in 2020 or 2021.
✔ Operations that were limited by commerce, travel, or group meetings due to COVID-19.
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✔ Your business experienced a significant decline in gross receipts in 2020 and 2021 compared to the same quarter of the previous year. A 50% decline must have occurred in 2020 or 20% for 2021.