Retaining Employees During the Pandemic
What is Employee Retention Credit?
The Employee Retention Credit (ERC) was introduced as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to incentivize employers to retain employees during the pandemic by offering a refundable tax credit against employment taxes.
Who is eligible for the Employee Retention Credit?
2020 ERC Eligibility
- Significant Decline in Gross Receipts: Employers that had more than a 50% decline in gross receipts in any calendar quarter as compared to the same calendar quarter in 2019; OR
- Partial Suspension of Operations: Employers that were disrupted due to COVID-19 Orders limiting commerce, travel or group meetings
2021 ERC Eligibility
- Significant Decline in Gross Receipts: Employers that had more than a 20% decline in gross receipts in Q4 2020, Q1 2021, Q2 2021 or Q3 2021 as compared to Q4 2019, Q1 2019, Q2 2019 or Q3 2019; OR
- Partial Suspension of Operations: Employers that were disrupted due to COVID-19 Orders limiting commerce, travel or group meetings
How Can We Help?
We utilize a proprietary ERC technology that allows automation and standardization of services connecting to pre-populated government orders to efficiently calculate and document the credit benefits including:
- Determine if the company is an eligible employer and coordinate with a company’s tax and other applicable internal departments
- Use a proprietary technology allowing automation and standardization of services to efficiently calculate and document the credit benefits
- Ensure there is no double-counting with other employment tax provisions
- Assist with claiming the credit and support proper treatment for credits claimed
To best serve you, we offer both complimentary scoping activities for businesses to quantify estimated tax credit benefits.
For more information on eligibility requirements for the recently expanded Employee Retention Credit, please reach out to your local Cherry Bekaert professional today.
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