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.
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
KBKG Tax Insight: IRS Issues ERC Disallowance Letters and Changes ERC Moratorium Date
08/09/2024Thought Leadership by Ian Williams, Principal | KBKG As mentioned in KBKG’s last blog post, the IRS provided an update in June surrounding the Employee Retention Credit (ERC), noting that it was planning to disallow high-risk claims and begin catching up on processing low-risk claims this summer. While the IRS did not provide clarity on … Read More
IRS ERC Update: ERC Processing Resumes, Moratorium on Certain Claims Still in Effect
06/25/2024Thought Leadership by Ian Williams, Principal | KBKG On June 19, the IRS issued a much-needed update on the status of ERC processing. KBKG has summarized the key points from their news release below. Post-Moratorium Claims: The moratorium on the processing of claims filed after 9/14/23 is still in effect. A specific resumption date has … Read More
ERC Tax Season Reminders and Updates
03/04/2024ERC Tax Season Reminders and Updates Thought Leadership by Ian Williams, Principal | KBKG As we near tax filing deadlines we are also approaching the first Employee Retention Tax Credit (ERC or ERTC) filing deadline (4/15/2024 for any 2020 ERC claims, 4/15/2025 for any 2021 ERC claims). Many taxpayers are still awaiting the processing of … Read More
KBKG Tax Alert: Proposed Bill Fixes 174 Capitalization and Cuts Off New ERC Claims
01/16/2024KBKG Tax Alert: House passes proposed bill to Fix 174 Capitalization, Extend 100% bonus depreciation, and Cut Off New ERC Claims, now in Senate consideration. Proposal Aims to Boost Businesses with Immediate Deductions for Domestic Research and Experimental (R&E) Expenditures and Capital Investments on qualified property while reining in the Employee Retention Credit (ERC). The … Read More
Understanding the IRS’ ERC Voluntary Disclosure Program
01/03/2024Understanding the IRS’ ERC Voluntary Disclosure Program Thought Leadership by KBKG The IRS’ introduction of the Employee Retention Credit Voluntary Disclosure Program (ERC-VDP) is a significant development that offers businesses, tax-exempt organizations, and government entities a chance to rectify any ineligible claims for the Employee Retention Credit (ERC). We summarize the key points from the IRS announcement … Read More
Interpreting Communications from the Occupational Safety and Health Administration (OSHA) for ERC Eligibility
12/07/2023Interpreting Communications from the Occupational Safety and Health Administration (OSHA) for ERC Eligibility Thought Leadership by KBKG WARNING IRS issues further guidance that reliance of OSHA guidelines does not meet standards of government orders for ERC. If you or your ERC provider used OSHA guidelines as a reason for a government shutdown your credits are … Read More
Withdrawal of ERC Claims: A Comprehensive Guide for CPAs
11/06/2023Withdrawal of ERC Claims: A Comprehensive Guide for CPAs Thought Leadership by Ian Williams, Director | KBKG In IRS notice, IR-2023-193, released this week, the IRS has taken a significant step to protect small businesses and organizations from potential scams related to the Employee Retention Tax Credit (ERC) by introducing a novel withdrawal process. This process is designed … Read More
New Questions People Are Asking About ERC
10/23/2023New Questions People Are Asking About ERC Thought Leadership by KBKG Originally published 5/1/2023, updated 10/10/2023 On September 14th, 2023, the IRS took the significant step of suspending the acceptance of new ERC claims until at least December 31st, 2023. This was in response to mounting concerns about the integrity of the Employee Retention Credit … Read More
KBKG’s ERC Guidance for CPAs and Tax Professionals
10/16/2023KBKG’s ERC Guidance for CPAs and Tax Professionals Thought Leadership by KBKG Regarding the latest IRS rules and regulations on the Employee Retention Tax Credit program, it’s paramount for Certified Public Accountants (CPAs) and Tax Professionals to stay ahead of the curve. The Internal Revenue Service (IRS) recently introduced a moratorium on processing Employee Retention … Read More
Advice for Taxpayers About the ERC Moratorium
10/11/2023Advice for Taxpayers About the ERC Moratorium Thought Leadership by Ian Williams, Director | KBKG The Employee Retention Tax Credit (ERC) is a complex tax credit created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020 to help businesses keep their employees on the payroll during the COVID-19 pandemic. The ERC is … Read More