What is the Employee Retention Credit?
The Employee Retention Credit (ERC or ERTC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The refundable credit is available from March 13, 2020, through September 30, 2021, and can be utilized even if companies received PPP loans. Businesses that started up after February 15, 2020, are eligible for up to $100,000 of credits on wages paid from July 1, 2021, through December 31, 2021.
It's not too late to still claim your ERC tax credit.
KBKG is providing the following services to assist with ERC:
- Determine if the employer qualifies, and if so, for which quarters
- Determine which employee wages qualify
- Calculate credits, including analysis of PPP interplay
- Reconcile actual credits with advance credits requested
- Prepare reconciled data for Form 941-X
- Prepare documentation supporting eligibility
Recipients of PPP loans are now eligible to qualify retroactively for the credit in 2020 and 2021.
For 2021, there is a maximum credit of $7,000 per eligible employee, per quarter. The 2021 credit is computed at a rate of 70% of qualified wages paid, up to $10,000 per eligible employee, per quarter. For Eligible Employers with less than 500 average full-time employees in 2019, the credit is available for all employees receiving wages in 2021.
For 2020, there is a maximum credit of $5,000 per eligible employee. The 2020 credit is computed at a rate of 50% of qualified wages paid, up to $10,000 per eligible employee for the year. For Eligible Employers with less than 100 average full-time employees in 2019, the credit is available for all employees receiving wages in 2020.
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Listen to this message from ERC Expert Jason Melillo to CPAs stressing the importance of being wary of ERC mills.
An Eligible Employer (including all members of a control group) must meet one of the following criteria:
Additional rules and limitations apply.
Employee Retention Tax Insights
How KBKG Helps CPAs With the Employee Retention Credit
How KBKG Helps CPAs With the Employee Retention Credit Thought Leadership by KBKG Two years after the CARES Act established the Employee Retention Credit, CPAs are still handling ERC (or ERTC) tax credit claims. With this credit’s many complex details, a meticulous approach to ERC filings is essential. KBKG offers industry-leading knowledge and services on … Read More
Top 5 Questions Your Clients Will Ask About the ERC
Top 5 Questions Your Clients Will Ask About the ERC Thought Leadership by KBKG Many clients may inquire about the employee retention tax credit this season. Naturally, you want to prepare accurate returns while strategically reducing tax liabilities and avoiding audits. The Internal Revenue Service issued a severe warning in March of 2023 about improperly claiming the … Read More
Struggling With ERC Claims? Why Partnering With KBKG Is Your Best Solution
Struggling With ERC Claims? Why Partnering With KBKG Is Your Best Solution Thought Leadership by KBKG If you belong to the majority of Certified Public Accountants, you are likely to encounter both past and present tax returns during the tax season. It is not uncommon for you to be required to file claims for the … Read More
Everything To Know About ERC Processing Times
Everything To Know About ERC Processing Times Thought Leadership by KBKG Navigating the process of using the employee retention credit can be tricky, even once you’ve reached the stage of waiting for a refund. If you’ve been waiting for yours, you may be wondering “How do I check the status of my ERC refund?” Let’s … Read More
Top 5 Questions To Ask a CPA About ERC
Top 5 Questions To Ask a CPA About ERC Thought Leadership by KBKG How does the employee retention credit work? This is a refundable tax credit for eligible businesses that continued to pay their employees in spite of being shut down or while they experienced a significant decline in gross sales during the COVID-19 pandemic. … Read More
Where is My Employee Retention Credit Refund?
Where is My Employee Retention Credit Refund? By Ian Williams, Director, Research & Development Tax Credits and Employee Retention Credits | KBKG The Employee Retention Tax Credit (ERTC or ERC) was introduced by the US government as a response to the economic impact of the COVID-19 pandemic. The ERC is a refundable tax credit that was … Read More
Top 5 Things To Look Out for With the ERC
Top 5 Things To Look Out for With the ERC Thought Leadership by KBKG, 4/19/2023 Over two years after the CARES Act introduced the Employee Retention Credit, eligible businesses and nonprofits can still claim it on their tax returns. You may want to claim the ERC tax credit but do not know the applicable guidelines. … Read More
How KBKG Helps Small Businesses With the ERC
How KBKG Helps Small Businesses With the ERC Thought Leadership by KBKG, 4/19/2023 Everything about business taxes is complex. Mistakes can become costly, especially with detailed filings such as the c. As a business owner, you must focus on strategic planning and operations. With extensive experience and robust solutions, KBKG helps small companies such as … Read More
Frequently Asked Questions About Employee Retention Credits
Frequently asked questions about Employee Retention Credits A comprehensive guide that answers frequently asked questions about the ERC program, including eligibility, requirements, and limitations. Thought Leadership by KBKG Table of Contents: What is the Employee Retention Credit (ERC)? Who is eligible for the Employee Retention Credit? What are qualified wages for the ERC? Can I … Read More
Accounting Today: Risks Associated With the ERC
Accounting Today: Risks Associated With the ERC As published in Accounting Today | by Jason C. Melillo, 4/18/2023 This excerpt is from “Risks Associated With the ERC.” Read the full article now in Accounting Today. […] We have seen many questionable claims by ERC mills, one for example saying, “All businesses impacted by supply … Read More