The U.S. government will pay you up to $26,000 out of the ERTC (Employer Retention Tax Credit) program funds for each of your employees, as long as your business meets the qualification requirements as specified below. The money comes from the funding allocated to the CARES Act, that was passed as an act of the U.S. Congress on March 25, 2020.
The employees must be on your W-2 payroll, and they cannot include the business owners themselves nor any of their immediate family members.
A maximum number of 500 employees per business entity may receive the money.
Both not-for-profit as well as for-profit businesses are eligible.
Payments may continue to be made from the ERTC program through 2nd quarter of 2024, or whenever the available funds are used up, whichever comes first.
More Details of the Employer Retention Tax Credit Program (ERTC)
Because the ERTC came out at the same time as the Payroll Protection Plan (PPP), most business owners don’t know as much about it. At the time of their introduction, only one of the two was available, so businesses had to make the choice between the PPP and the ERTC. It was simpler to receive funding from the PPP, and therefore the ERTC was left pretty much abandoned.
But the rules were changed in March, 2021. Since then, a business can receive funding from both the PPP and the ERTC. So if your business did not qualify prior to March, 2021, the odds are quite favorable that you may qualify now.
Although the ERTC was created in order to assist businesses during the financial hardships of the COVID-19 pandemic, your business might still qualify even if your finances did not suffer through COVID times. It doesn’t matter even if your business did better.
Just because you did not shut down your operations, that doesn’t mean you can’t qualify.
And even if you also received Payroll Protection Plan loans, you may still be able to get paid from the ERTC funding.
If your business has at least two W-2 employees (not including yourself and your close family), then it is recommended that you find out whether you can get paid up to $26,000 per employees (up to a maximum of 500 staff).
Can you spare 10 to 15 minutes for a free (no obligation) phone call? All you need to do is talk to one of the representatives and you can find out how much ERTC money you could receive.
Then, if turns out that you do qualify, you will be sent an email message with all the details on the precise steps you need to follow in order to be paid the government funding.
Businesses had to have been affected in one of two ways in order to qualify for the ERTC your business…
1. A decline in gross receipts over a declared quarter. Over any declared quarter in 2020, a decline of 50% or more must be shown to claim the credit; however the credit is capped at $5,000 for the year. In 2021 the credit was expanded for businesses who only experienced a 20% reduction in revenue. For each individual quarter in 2021 businesses can be eligible for up to $7,000 in credits per employee.
2. Either a “Complete or Partial” Closure of your business. All across the United States, local government restrictions and mandates were put into place; social distancing, being compelled to work from home, or even the closure of your business in its entirety.