Don’t Miss Out on the Employee Retention Credit
There’s no doubt the COVID-19 pandemic has impacted your business or operations in the past year. If you haven’t already taken advantage of the Employee Retention Credit (ERC), a fully refundable payroll tax credit that provides eligible employers with up to $26,000 per employee from March 13, 2020, through September 30, 2021, now is the time.
Many companies do not think they qualify and have found out they do. Click here to learn how one company unexpectedly claimed nearly $2.5 million in ERC funds.
IMPORTANT UPDATE: The Infrastructure Investment and Jobs Act, which the House approved Friday, November 5 and is pending President Biden’s signature, ends the ERC program early, making wages paid after September 30, 2021, ineligible for the credit, except for wages paid by an eligible recovery startup business. While the Build Back Better legislation may bring additional changes to the program, this development makes applying for the credit today more important than ever to ensure you get the relief your business needs.
The program originally was scheduled to run through the fourth quarter of 2021. That means qualified businesses will only be able to claim a maximum of $26,000 per employee in total for 2020 and the first, second and third quarters of 2021. Previous legislation, which included the fourth quarter of 2021, afforded up to $33,000.
Recent legislative changes have made the ERC available to businesses that have received a U.S. Small Business Administration Paycheck Protection Program (PPP) loan, which reversed previous rules that excluded you from claiming the ERC and accepting a PPP loan. Combining the two can help alleviate your concerns about managing costs to keep your operations – and employees – in place for the long haul
Since both programs focus on wages, there’s a fine line between fulfilling PPP forgiveness and incorporating ERCs into your relief strategy. The Janover team can help you strategically navigate each program to maximize the total benefits you can receive while complying with the guidelines for both programs.
Are You Eligible for ERC?
Eligible employers are those that:
- Saw a full or partial suspension in operations because of orders from the federal government, or a state government having jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19, or
- Experienced a 50% decline in gross receipts during any quarter in 2020 compared to the same quarter in 2019 or a 20% decline in 2021 compared to the same quarter in 2019.
If you experienced either of these scenarios, you might be eligible for ERC. Don’t miss out.
Janover has helped businesses claim more than $50 million in ERCs to date, and we’re ready to help get your share. Please contact us today so we can help determine your eligibility, calculate the credit, and get your filing process started.
ERC Assistance from Janover
Janover has a team of advisors and consultants at the forefront of ERC, PPP, and other CARES Act programs. We continue to monitor ERC and all-new guidance from Congress, the IRS, the SBA, and the Treasury. Please complete the form below so we can help guide you through the ERC process.