Moratorium Status: The IRS moratorium on processing new ERTC claims began on 9/14/23 and is still in effect. The IRS has resumed processing pre-moratorium claims, at a slower pace.
Employee Retention Credit Status: The 2020 credit filing statute has expired. The 2021 credits are still available to claim through 4/15/25 via 941-X.

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.

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.

2020

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.

ERC Experts

REGISTER

Register for our ERC webinars

Work with a Trustworthly
Provider

Listen to this message from ERC Expert Jason Melillo to CPAs stressing the importance of being wary of ERC mills.

Eligible Employer

An Eligible Employer (including all members of a control group) must meet one of the following criteria:

Full or Partial Suspension

Have their operations fully or partially suspended due to orders from a governmental authority.

Decline in Gross Revenue

Suffer a significant decline in quarterly gross revenue as measured against 2019 (50% decline for 2020; 20% decline for 2021)

Additional rules and limitations apply.

Employee Retention Tax Insights

Have Questions? We're here to help.

Join us for an upcoming ERC webinar with live Q&A.

REGISTER