How to Apply For & Receive Employee Retention Credit (ERC) for Small Business
Does your company have from 1 to 499 W2 employees? If so, you may be eligible to receive business funding from the federal government, with the Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit.
Businesses are eligible for:
• Funding from the government
• Up to $26,000 per W-2 employee
• No payback required, as this is NOT a loan
• Funds are not earmarked, so spend on anything desired for your business
What is the ERC?
There’s no question that the COVID pandemic was a terrible time in our history. Businesses around the world suffered immensely from the outbreak of the disease. In the United States, businesses were forced to close their doors, ultimately crippling them and their ability to pay salaries to retain employees.
In order to prevent further economic damage, Congress stepped in with a solution to help small businesses to stay afloat and continue to operate as best as possible without having to let employees go.
The ERC was under the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), which was a $2.2 trillion economic stimulus bill passed by the U.S. Congress and signed into law by President Trump on March 27, 2020. The bill was developed in direct response to the economic fallout for businesses during the COVID pandemic of 2020. The bill was amended under President Biden as the American Rescue Plan Act (amended to allow companies to have access to both PPP & ERC funds).
The program provides funds for businesses that were affected by the pandemic (Covid). Under the bill, qualifying businesses are eligible to apply for their fair share of funds being dispersed by the Federal Government. $500 billion dollars have been allocated to this program which is scheduled to be available through 2025.
- Businesses can continue to retroactively claim ERC if they have not done so already
- Funds are not earmarked so can be spent on anything with no payback
- This is not a loan
How to Claim the Tax Credit for Your Business
In order to claim the new Employee Retention Credit, eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns beginning with the second quarter of 2020.
Of course, dealing with these confusing and complicated tax matters can be a headache that none of us have time for. Even most accountants do not know how to properly complete and file ERC applications.
The good news is that The Transaction Group and our partners make it easy to determine your eligibility, file and get your share of the ERC that many other businesses have already applied for and received.
At the Transaction Group, we are partnered with reputable ERC Specialists that are extremely proficient at working with the IRS and properly filing for the Employee Retention Credit (ERC).
Get Started on Your Business Approval
Don’t be like the many businesses that lose out on funds they were eligible for simply due to errors and misunderstandings. Our ERC Specialists are experts in small business accounting and well versed in the ERC and have over a 96% success rate of these companies getting approval and receiving funding.
Click to start your application now or call us now at 888-383-8056.