ERC, Employee Retention Credit
John Adams Consulting
ERC- Employee Retention Credit
What is ERC?
The ERC, also known as the Employee Retention Credit, is a federal program passed by Congress as part of the CARES Act. It’s designed to reward employers hit hardest by the effects of the pandemic for retaining part or all of their workforce despite a loss in revenue or ability to function as a business. The ERC started in 2020, and wages through September 30, 2021, qualify for the credit.
Benifits of this consultation
The ERC represents a sizeable benefit for employers, totaling up to $26,000 per W-2 employee. In addition, employers can receive the credit even if they also received a PPP Loan.
Please see the IRS documentation on the ERC application. This will explain the process for specific benefits and amounts available to you in particular quarters. ERC specialists are also happy to provide a consultation and set up your organization’s application for ERC on your behalf.
Changes Since Launching
The ERC eligibility has changed from 2020 to 2021, offering more businesses the chance to benefit. In addition to an increase from $5,000 to $7,000 per employee per quarter, more ways to qualify have been added. The amount of revenue reduction necessary to receive benefits under that type of qualification was changed from 50% to 20%
Eligibility
The three ways to qualify for the ERC are the same for all businesses but may take on a different outward appearance depending on the industry. A company is eligible if they were forced to suspend or significantly reduce operations because of a government mandate affecting its area of operation or a reduction in revenue compared to 2019. The revenue reduction type of qualification is not based on gross profit but revenue, so increases in business expense costs are not factored in. For example, some ways that companies have qualified include social distancing requirements that forced them to reduce the number of customers served and shutdown-caused supply chain disruptions that made them unable to receive needed equipment on time. The best way to find out if your business is eligible is to speak with an ERC specialist.
In Conclusion
The ERC is an excellent benefit for small businesses to begin returning to normalcy after the pandemic, is relatively painless to apply for, and greatly benefits the recovery process. We at ERC Specialists are ready to help you apply for and receive all you’re entitled to from this refundable tax credit. Contact us today to begin applying and get your ERC funding process rolling.
Your business and the Employee Retention Tax Credit TAX
Was your business negatively impacted by the COVID-19 pandemic?
You are likely eligible for the Employee Retention Credit (ERC)
of up to $26,000 per employee.
The ERC program was created under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) as part of the federal government’s relief program to encourage and reward business owners that retain employees during the pandemic. Recently, the policy was amended to enable business owners to qualify for ERC tax credits even if they received PPP loans. The time period the program covers was also extended from March 22, 2020 to December 31, 2021.
Does your business qualify?
Your business qualifies for ERC if you experienced a partial or complete suspension of operations.
Social distancing rules reduced capacity
Reduction of hours of operation
Distribution delays or suspensions
Supply chain disruptions
Client meetings
Your business qualifies if you experienced a significant reduction in revenue during any quarter of 2020 or 2021 as compared to 2019.
50% decrease in revenue per quarter in 2020
20% decrease in revenue per quarter in 2021
ERC tax credit eligibility
For 2020, if your business was fully or partially suspended, was forced to restrict business hours, or experienced a reduction of 50% or more revenue (gross receipts) as compared to the same quarter in 2019, you are eligible for ERC tax credit. If your business meets this requirement, you are eligible for the ERC tax credit equal to 50% of eligible employee wages.
Maximum credit per employee: $5,000
For 2021, if your business was fully or partially suspended, was forced to restrict business hours, or experienced a reduction of 20% or more revenue (gross receipts) as compared to the same quarter in 2019, you are eligible for ERC tax credit. If your business meets this requirement, you are eligible for the ERC tax credit equal to 70% of eligible employee wages,
Maximum credit per employee: $21,000
Businesses that qualify for both 2020 and 2021 ERC tax credits may receive up to $26,000 per eligible W-2 employee.
We have the integrity and experience you can trust
At ERC Specialists, we have the right tax professionals to help you decrease your tax liability and get the most tax benefits available to you. You can rest easy knowing that our experts will find every benefit you are entitled to while staying on the right side of the IRS guidelines. We’ve learned a thing or two with 40-plus years in the tax business. We put that knowledge to work for you.
We have the tax expertise you need to get the most tax credits from ERC.
ERC Advisory board
Matt WHITAKER
Former United States Attorney General
Sean REYES
State of Utah
Attorney General
Alan CROOKS
Government Relations
James Clarke
Clarke Capital Partner
ERC Credibility
Josh ZIEGLOWSKY
Co-founder
Mary SLAWSON
Forensic Tax Expert
Geri BOHN
ERC Payroll Tax Expert
Rocky CROFTS
Esq. JD., LL.M.
ERC Specialists is a specialty tax service company exclusively dedicated to understanding and maximizing the CARES Act Employee Retention Credit (ERC) for small businesses affected negatively by COVID-19. We are the largest privately owned processing company in America
Meet the Instructor
John Adams virtually grew up with restaurant work. Watching his mother work with a crew at a local diner, the Calico Kitchen in Scottsville, NY. John began working as a dishwasher at age 14 in the same location.
This has led to several restaurant, banquet hall, and pizzeria experiences from the front line to the Leadership Team over a 39 year career! Over the last several years, John was engaged as a District Manager, a Leadership Trainer, and a Business Development Manager. John was on track to become a Domino’s Franchisee but chose to become a consultant instead.
John has received Local, Regional, and National awards from various organizations over his career. This includes a Top Ten Sales Building Award for having top ten highest sales growth out of 5400+ units Nationally with Domino’s in 2014. This was in a store that had been open for thirty three years previous to his taking over the location and then sending sales into the stratosphere!
John had become a leader in having great results in his stores and was known as a “Turn Around Guy”. He has been in very difficult environments with crews that were not performing well and having terrible results, all with highly positive changes! Beginning with a principle based approach, correct hiring, creating a vision for the Team, training to high proficiency, and setting the examples that each Team Member needed to see; Great Results always followed!
John has understood that each restaurant or pizzeria can have delicious, well presented food. However, without the right people in place, success will be elusive. True success in food service always comes down to the Team in place!
John Adam
Consultant, CEO & Founder of John Adams Consulting
Book your consultation today!
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