The Employee Retention Credit is a federal tax credit which is intended to alleviate some of the financial burdens faced by employers while incentivizing them to maintain their workforce and contribute to economic recovery.
To qualify for the Employee Retention Credit (ERC), a business needs to meet certain criteria. Firstly, the business must have experienced a significant decline in gross receipts compared to a comparable period before the COVID-19 pandemic. Secondly, the ERC is available to businesses of all sizes, including for-profit and nonprofit organizations. Thirdly, they must have either been fully or partially suspended due to a government order related to COVID-19. Lastly, the ERC is applicable for businesses that qualify as a recovery startup. For the ERC in 2020, businesses can claim the credit for wages paid between March 12 and December 31. In 2021, the credit is available for wages paid in the first three quarters of the year.
Credit League is a US-based organization that assists businesses in claiming applicable ERC. They include a highly-trained team of attorneys and CPA who can provide information regarding qualifications, help prepare necessary documentation, complete your ERC filling and maximize returns. They offer 1-on-1 consultations, simple and confidential uploads, payroll and pandemic impact reviews.