You may be wondering, what exactly is the Employee Retention Credit all about?
The Employee Retention Credit (ERC) is a government program enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act that allows businesses that were negatively impacted by the COVID-19 Pandemic to qualify for a refundable payroll tax credit. Businesses can be eligible for up to $26,000 per employee retained during the pandemic.
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The Employee Retention Credit is NOT A LOAN, which means it does not need to be paid back or forgiven. The funding is issued in form of a Check from the Department of Treasury. Businesses are still eligible to receive these credits even if they received PPP loans.
If your business experienced any of the following due to the COVID-19 Pandemic, you may qualify for the ERC:
Capacity Limits
Shutdowns (Partial or Full)
Supply Chain Distruption
Increase in Sanitation Requirements
Inability to Access Euipment