The Employee Retention Credit (ERC) was introduced as part of the Coronavirus Relief, Relief and Economic Security Act (CARES Act) to help businesses retain their employees during the pandemic. The ERC is calculated quarterly and is equivalent to 50 percent of the “qualifying salary” of each employee of an eligible employer. The calculation is based on total qualified salaries, including health plan expenses paid by the employer to the employee. We help companies calculate their ERC potential with an online tool that you can do yourself and that also offers additional practical assistance if needed. One of the reasons for the lack of commitment to the ERC could be the apparently overwhelming calculation process.
Talk to an ERC expert to fully understand your qualification status and calculate the amount of your prize. Businesses can still apply for the ERC by filing an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. We haven't seen a slowdown in the approval of requests by the IRS, says Martin Karamon, director of Cherry Bekaert, who leads the firm's ERC team. ERC credits are calculated based on the qualifying wages paid to employees during their status as an eligible employer. If you didn't have any employees, you don't qualify for the ERC; however, you may still be eligible for paid vacation credits. From now on, the only way to apply for the ERC is to file an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. It is very important to develop working documents that allocate PPP funds for the entire covered period of 24 weeks when applying for ERC.
With just a short questionnaire, this ERTC service will assess your company's eligibility and provide you with some options to find the best ERC firms for your situation.