Does Your Business still Qualify - ERTC?

The Employee Retention Tax Credit (ERTC) is a tax credit available to eligible employers who have been negatively impacted by the COVID-19 pandemic. Here are some general rules for the ERTC:

Eligible Employers: Employers who experienced either a full or partial suspension of operations due to a government order or a significant decline in gross receipts during any calendar quarter in 2020 or 2021 may be eligible for the ERTC. Eligibility requirements may vary depending on the year.

Qualified Wages: Employers may claim a tax credit for qualified wages paid to eligible employees during the time that the employer was eligible for the credit. Qualified wages are generally limited to $10,000 per employee per calendar quarter.

Credit Amount: The ERTC is equal to 50% of qualified wages paid to eligible employees up to a maximum credit amount of $5,000 per employee for all of 2020 and $7,000 per employee per quarter for 2021.

Interaction with PPP Loans: Employers who received a PPP loan in 2020 or 2021 are still eligible for the ERTC, but they cannot claim the credit for wages that were paid using the PPP loan funds.

It's important to note that the ERTC rules and eligibility requirements may change over time, and there may be additional nuances depending on each employer's specific situation. I recommend consulting with a qualified tax professional or reviewing the official IRS guidance on the ERTC for more information. Visit us at https://mrgtgroup.com