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Employee Retention Credit
With the update to the CARES act, you can now get up to a $33,000 tax credit, per employee.
This is in addition to a fully forgiven PPP1 and PPP2 Loan. CovidCredit will handle all the paperwork!
How does this work?
The CARES Act of March 27, 2020 enacted the Paycheck Protection Program (PPP) as well as a (up to) $5,000 per employee tax credit named The Employee Retention Credit (ERC).
How do I apply?
Simply fill out the form above or call us and one of our specialists will help you get the process started. Call us before your accountant!
Does my business qualify?
- Do you own, manage, or work for a company that was negatively impacted by Covid-19?
- Did your 2020 or 2021 revenue decline significantly?
- Were your customers barred from buying your products or services due to governmental restrictions?
- Or, was your business deemed non-essential and legally restricted from operating at full capacity?
If you have answered yes to these questions, you likely qualify for the Employee Retention Credit, a newly available tax credit directly from the IRS.
Frequently Asked Questions
Your business must have suffered either:
- Full or Partial Suspension of Operations Due to a Governmental Order
- Experience a Significant Decline in Gross Receipts versus 2019
If Any governmental agency issued an order to restrict how or when you operate your business, you were Suspended.
If you operate a restaurant and you were only allowed to serve your customers via take out – you were Partially Suspended
If you operate a retail store and the number of customers who can occupy your store decreased due to COVID restrictions – this is a Partial Suspension
Using a calculator – take your top line revenue for any quarter of 2020 or 2021 and divide it by the same quarter in 2019 (for example Q2 2020 versus Q2 2019 OR Q1 2021 vs Q1 2019).
You qualify If your answer is:
- Less than 0.50 for 2020
- Less than 0.80 for 2021
No. You can only claim wages paid to one program.
At CovidCredit.com can help analyze your PPP loan forgiveness wages to ensure you earn the most credit possible from the ERC program.
Our proprietary app takes PPP forgiveness AND ERC-eligible wages into consideration to ensure you receive THE MOST CREDIT POSSIBLE.
We can work with your payroll company to start deferring payments to the IRS immediately! This is the quickest way to receive the credit.
If your credit due exceeds your payroll tax liability we will request a refund from the IRS on your behalf.
ALL businesses except government entities
Paid W-2 Wages in 2020 and/or 2021
Even non profits (credit taken against employer paid taxes)
YES – tip wages are eligible because FICA taxes were paid on them by the employees and the employer!
$5,000 per employee for wages paid in 2020
$7,000 per employee PER QUARTER for wages paid in Q1 and Q2 2020
- ($14,000 per employee in 2021)
Yes. There are credits you can claim for wages paid to employees who:
- Were out sick with COVID
- Were home taking care of a family member
- Had to take time off to care for children who were displaced from school and/or daycare
Chat/call us to learn more!
We specialize in this credit, can calculate everything, and can usually have all the paperwork completed in 24 hours or less.
Your CPA and/or existing payroll company may (or may not) be able to help. You can even spend the time to learn about the credit and DIY if you choose.
Using our proprietary software, we are confident we will find more eligible credit for you than DIY or your CPA.