Employee Retention Credit – An Immediate Cash Infusion for Qualifying Employers

Through the Employee Retention Credit (ERC), employers can receive upwards of $33,000 in tax credits per employee for tax years 2020 and 2021. This is a fully refundable federal employment tax credit, one of the largest federal incentives available for most businesses. Best of all, both essential and non-essential businesses can claim it, even if they received funds from the Paycheck Protection Program (PPP) or other COVID relief programs.

An employer only needs to meet one of the two criteria to qualify for immediate ERC benefits:

  • Show at least a 50 percent drop in quarterly revenue from one quarter in 2019 to the comparable quarter in 2020. For 2021 ERC, the quarterly revenue decline must only be more than 20 percent for the same quarter in 2019.
  • Demonstrate a direct or indirect impact on your business due to COVID-related shutdowns at the federal, state, or local level.

Determining how the ERC interplays with other wage-based credits can be confusing and can impact other tax reporting. To avoid expensive mistakes, it’s essential that you claim the credit correctly.

Moskowitz LLP helps many businesses claim these payroll-based tax incentives. With the help of our experienced tax professionals, you can apply for the ERC and potentially qualify for other incentives. We will also help you meet record-keeping needs applicable to the ERC, PPP forgiveness, and other credits.

Steve Moskowitz and Moskowitz LLP appreciate the sweat and tears that go into building a business, and we want you to benefit from the tax laws. These tax breaks were enacted with you in mind. Your clients and employees are counting on you to claim what’s yours.