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

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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.

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