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EMPLOYEE
RETENTION
CREDIT
BY: DENISE BARNES
Have you heard of
ERC, the Employee
Retention Credit? ERC
is a substantial
stimulus for a business
that chose to retain its
employees during the
Covid-19 pandemic.
The Covid-19 pandemic has brought
unprecedented challenges to businesses
worldwide. Many companies have faced
the difficult decision of whether to lay off
employees or keep them on board despite
financial constraints.
To support businesses during these trying
times, the U.S. government introduced the
Employee Retention Credit (ERC). In this
informative guide, we will explore what
ERC is, its eligibility criteria, benefits, and
how businesses can take advantage of this
substantial stimulus to retain their
employees and navigate the economic
impact of the pandemic.
Click here to qualify for the (ERC).
Understanding the Employee Retention
Credit (ERC)
ELIGIBILITY CRITERIA FOR ERC:
Business Operations:
The business must have been fully or
partially suspended due to a
government order related to Covid-
19.
Alternatively, the business must
have experienced a significant
decline in gross receipts. For 2020,
the decline should be 50% or more
compared to the same quarter in
2019. For 2021, the threshold
increased to 20%.
The significant decline in gross
receipts continues until there is a
quarter where gross receipts exceed
80% of the same quarter in 2019.
1.
Businesses of all sizes are
eligible for ERC. There is
no employee count
requirement.
However, for large
employers (more than 500
employees), the credit
only applies to wages paid
to employees who were not
providing services.
Employee Count:
Click here to qualify for the (ERC).
Previously, businesses that
received a Paycheck
Protection Program (PPP) loan
were not eligible for ERC.
As of the Consolidated
Appropriations Act, 2021, and
the American Rescue Plan
Act, businesses can now claim
ERC even if they received a
PPP loan.
However, wages used for PPP
loan forgiveness cannot be
used again for calculating the
ERC.
PPP Loan Impact:
Click here to qualify for the (ERC).

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Employee Retention Credit

  • 1. EMPLOYEE RETENTION CREDIT BY: DENISE BARNES Have you heard of ERC, the Employee Retention Credit? ERC is a substantial stimulus for a business that chose to retain its employees during the Covid-19 pandemic.
  • 2. The Covid-19 pandemic has brought unprecedented challenges to businesses worldwide. Many companies have faced the difficult decision of whether to lay off employees or keep them on board despite financial constraints. To support businesses during these trying times, the U.S. government introduced the Employee Retention Credit (ERC). In this informative guide, we will explore what ERC is, its eligibility criteria, benefits, and how businesses can take advantage of this substantial stimulus to retain their employees and navigate the economic impact of the pandemic. Click here to qualify for the (ERC). Understanding the Employee Retention Credit (ERC)
  • 3. ELIGIBILITY CRITERIA FOR ERC: Business Operations: The business must have been fully or partially suspended due to a government order related to Covid- 19. Alternatively, the business must have experienced a significant decline in gross receipts. For 2020, the decline should be 50% or more compared to the same quarter in 2019. For 2021, the threshold increased to 20%. The significant decline in gross receipts continues until there is a quarter where gross receipts exceed 80% of the same quarter in 2019. 1.
  • 4. Businesses of all sizes are eligible for ERC. There is no employee count requirement. However, for large employers (more than 500 employees), the credit only applies to wages paid to employees who were not providing services. Employee Count: Click here to qualify for the (ERC).
  • 5. Previously, businesses that received a Paycheck Protection Program (PPP) loan were not eligible for ERC. As of the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act, businesses can now claim ERC even if they received a PPP loan. However, wages used for PPP loan forgiveness cannot be used again for calculating the ERC. PPP Loan Impact: Click here to qualify for the (ERC).