Recent updates to the Employee Retention Tax Credit expanded its value, even to startups and PPP borrowers.
Find out now if you qualify.
Find Out Now if You Qualify
Need to know: ERTC
The Employee Retention Tax Credit (ERTC) under the CARES Act is a refundable tax credit that encourages businesses to keep employees on their payroll. Game-changing updates to the ERTC were finalized by the Consolidated Appropriations Act in December 2020 and the American Rescue Plan Act in March 2021.
Companies that received PPP loans may now also claim the ERTC. Additionally, nearly every aspect of the credit has been liberalized and extended to include Q3 of 2021.
Who is eligible?
Companies qualify for the ERTC if they (1) had a decline in quarterly revenue, or (2) were fully or partially shut down due to governmental orders, or (3) experienced a demonstrable disruption in business due to the government orders, (4) began a new trade or business with less than $1 million in average annual revenue.
What is it worth?
For 2020, the ERTC is worth up to $5,000 per employee per year. For 2021, companies can now get up to $7,000 per employee per quarter.