Employee Retention Credits (ERC) for Businesses in Illinois
Illinois 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, Illinois 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
Illinois recipients of PPP loans are now eligible to qualify retroactively for the Employee Retention Credits (ERC) 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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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
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