
Employee Retention Credits (ERC) for Businesses in Hawaii
Hawaii employers that continued to pay wages to eligible employees during the COVID-19 Pandemic may qualify for Employee Retention Credits (ERC). The refundable credit is available from March 13, 2020, through September 30, 2021, and can be utilized even if companies received PPP loans. Additionally, Hawaii start-ups launched 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 claim ERC. Contact KBKG's experts today for an analysis of all potential tax incentives that may be available to you.
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
Hawaii recipients of PPP loans are now eligible to qualify retroactively for the Employee Retention Credits (ERC) 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




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

Navigating new phase of ERC
10/02/2023Navigating the New Phase of Employee Retention Credits (ERC) By Ian Williams, Director | Employee Retention Tax Credits KBKG As Certified Public Accountants (CPAs), staying current with tax regulations is a top priority. In recent times, the Employee Retention Credit (ERC) program has undergone significant changes. The Internal Revenue Service (IRS) Commissioner’s latest signals have … Read More

IRS Pauses New Claims for Employee Retention Credit Program
09/15/2023IRS Pauses New Claims for Employee Retention Credit Program Thought Leadership from KBKG, Sep 15, 2023 In response to mounting concerns about the integrity of the Employee Retention Credit (ERC) program, the Internal Revenue Service (IRS) has taken the significant step of suspending the acceptance of new ERC claims until at least December 31, 2023. … Read More

Supply Chain Disruption – How to Get Compliant for the ERC
08/22/2023Supply Chain Disruption – How to Get Compliant for the ERC Thought Leadership on Employee Retention Credit by Ian Williams, DIRECTOR | KBKG In response to widespread abuse and negligence in the due diligence process related to employee retention credit eligibility (ERC or ERTC) via supply chain disruption, IRS Chief Counsel issued a generic legal advice … Read More

ERC Eligibility for Supply Chain Disruption
08/17/2023ERTC Eligibility for Supply Chain Disruption By Ian Williams, Director, Research & Development Tax Credits and Employee Retention Credits | KBKG The IRS Chief Counsel recently published a Generic Legal Advice Memorandum (GLAM), providing guidance on the eligibility criteria for the Employee Retention Credit (ERC or ERTC) in cases where employers claimed government shutdown qualification via shutdowns of … Read More

The Dangers of Inaccurate Filing Deadlines for the ERC
06/23/2023The Dangers of Inaccurate Filing Deadlines for the ERC Thought Leadership by KBKG Beware of Dubious Tax Advisors Tax season can be stressful for individuals and businesses alike, as the intricacies of tax laws and regulations can often be overwhelming. Unfortunately, unscrupulous tax advisors take advantage of this confusion, employing dubious tactics to market inaccurate … Read More

A Guide to Filing Form 941-X for Employee Retention Credits
06/14/2023A Guide to Filing Form 941-X for Employee Retention Credits Thought Leadership by KBKG If you believe your company is eligible to receive the Employee Retention Credit, the good news is that qualifying companies have until April 15, 2024 for the 2020 credit and April 15, 2025 for the 2021 credit, to file. However, to … Read More

How KBKG Helps CPAs With the Employee Retention Credit
05/01/2023How 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
05/01/2023Top 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
05/01/2023Struggling 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
04/24/2023Everything 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