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We’ve got answers. Take a look at the answers to the our most frequently received questions about the ERTC program.
The American Rescue Plan extended the ERTC to the end of 2021 (now ending September 30, 2021, with the passing of the Infrastructure Investment and Jobs Act). For 2021, eligible employers can get a credit equal to 70 percent of qualifying wages per quarter. The maximum credit per quarter is $7,000 per employee.
No……but hope is not lost. There is a movement by politicians to include Q4 2021 but currently, wages paid after September 30, 2021, are no longer considered eligible wages for ERTC purposes.
As of right now, if you paid employee wages prior to September 30, 2021, we encourage you to apply now.
Your company may be eligible for up to $26,000 per employee.
If you are making an ERTC claim for the year 2020, you can receive 50% of the qualified wages of your full-time workers, quarterly. Total wages considered are capped in 2020 at $10,000 per employee. Therefore, the highest credit you will receive per employee is $5,000.
For the year 2021, you can receive 70% of the qualified wages of your full-time workers quarterly for Quarter 1, Quarter 2, and Quarter 3. Total wages considered are capped in 2021 at $10,000 per employee per quarter. The maximum possible credit you can receive for each employee is $7,000 per quarter, amounting to $21,000 per employee for the year’s first three quarters.
According to the ERTC, qualified wages are the wages and compensation employers pay to their employees during the specified time frame. Therefore, to be eligible for an employee retention tax claim, your employees should have received qualified wages throughout the calendar year. If your company provided employee health insurance, that is included with the qualified wages.
That depends on the IRS backlog, and at present, the minimum expected wait time to receive your ERTC credit disbursement from the IRS is 9 months. Please note that due to the complexity of our processes and the critical nature to ensure absolute accuracy it will take approximately 3-6 weeks to complete your ERTC filing.
No. The employee retention tax credit is not a loan. Therefore, you do not have to pay it back.
Yes, you will be eligible. As of December 2020, the Consolidated Appropriations Act (CAA) made a provision that allows businesses that took out PPP loans to qualify. However, your number of qualified wages depends on your PPP loan forgiveness application.
As an example: If you provided your employee with $10,000 for the first quarter of 2021 in addition to $500 for health insurance, your ERTC will be 70% of the sum of the qualified wages and health insurance. Therefore, the total amount would be $7,350. Your situation may vary, so contact us to get an estimate.
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