Employee Retention Credit (ERC)
The Employee Retention Credit or ERC is a refundable payroll tax credit that businesses can claim on qualified wages and health plan expenses, paid to retain full-time employees. This tax credit is a relief measure for the businesses that retained their employees on the payroll, even if they were not working, during the Coronavirus outbreak.
However, due to the complicated tax code and qualifications, the program is highly underutilized. Clarus Partners dedicates a staff of tax professionals to make sure your claim is compliant and you receive maximum funding.
Below listed are the details of ERC program:
- Claim up to $5,000 per employee for 2020 and up to $21,000 per employee in 2021.
- The tax can be claimed from March 13, 2020, until September 30, 2021.
- Eligible employers are those whose business is fully or partially suspended by government order due to COVID-19; or the employer’s gross receipts are below 50% for 2020 and 20% for 2021, compared to 2019.
- ERC can be claimed retroactively.