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The Employee Retention Tax Credit

Everything you need to know to claim this tax credit and help your small business.

What is the Employee Retention Tax Credit (ERTC)?

The Employee Retention Tax Credit (ERTC) is a newly expanded refundable tax credit given to employers who are keeping their employees on payroll despite COVID-19 related challenges and losses. New legislation was passed in late December 2020 that made many businesses eligible for the credit for all quarters of 2021, who were not previously eligible in 2020.

The credit is equal to 70% of your employee’s wages that you pay out from January 1 through December 31st, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter. The maximum ERC amount available is $7,000 per employee per quarter for a total of $28,000 in refundable tax credits for 2021 and potentially up to $5,000 per employee for 2020.

Download our Employee Retention Tax Credit Guide!

Who qualifies?

Here are just a few examples of the industries that qualify for the Employee Retention Tax Credit.

qualifies - restaurants & bars

Restaurants & Bars

qualifies - hair & nail salons

Hair & Nail Salons

qualifies - gyms

Gyms

qualifies - veterinarians

Veterinarians

qualifies - distribution centers

Distribution Centers

qualifies - supply chain facilities

Supply Chain Facilities

qualifies - medical spas

Medical Spas

qualifies - optometrists

Optometrists

qualifies - churches

Churches

qualifies - dentists

Dentists

Considerations

It's important for owners to take advantage of PPP funds as well as the ERC credits program, but there are tax implications for ownership groups. Please consult your CPA for strategic tax planning concerning these programs. If you need strategic tax guidance and help with PPP forgiveness, schedule a meeting with our team to discuss your options.

Schedule a Meeting

We have worked with hundreds of companies to take them beyond payroll to full human capital management. The first step is to set up an appointment with an HCM Specialist. Schedule a quick 15 minute call with us to see if we make sense for you and your business.

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