Employee Retention Credit Luncheon, Sponsored by Grant Estate Law, LLC

The Employee Retention Credit allows eligible employers, including non-profits, to claim a tax credit against qualified wages paid to full-time employees.  The allowed credit is 50% of wages paid per quarter, up to $10,000 per employee annually, for wages paid between March 13, 2020 – December 31, 2020. The maximum credit is $5,000 per employee for 2020. In December of 2020, under the Covid-19 Relief Package, the ERC was extended from January 1, 2021 – September 30, 2021. This extension allows eligible employers to claim a credit against 70% of wages paid per quarter, up to $10,000 in wages per employee for 2021.  This results in a maximum allowable credit of $26,000 per full-time employee.

Employee Retention Credit – How do businesses qualify?   

A full or partial suspension of the operation of their trade or business during this period because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or
A decline in gross receipts in a calendar quarter in 2021 where the gross receipts of that calendar quarter are less than 80% of the gross receipts in the same calendar quarter in 2019 (to be eligible based on a decline in gross receipts in 2020 the gross receipts were required to be less than 50%).


Top three responses from potential clients when asked about the Employee Retention Credit:

• I have never heard of it, or, I don’t know anything about it.
• I have heard a lot of commercials, but it sounds like a scam.
• My CPA/CFO/Administrator told me we are not eligible.

 

Education is critical for small business owners and non-profit organizations to understand the ERC and the possible amount of funding available to them.  The last governmental estimate shows less than 10% of eligible businesses have applied. Please join us for an overview of the ERC program and how your organization may be eligible to receive ERC funds.