Do You Qualify for the Employee Retention Tax Credit?
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The expanded Employee Retention Tax Credit (ERTC) provides welcome relief for businesses and organizations hardest-hit by the global pandemic. Here’s what you need to know.
ERTC Qualifications
You may qualify for the ERTC if:
- Operations fully or partially suspended by a government order, or
- Gross receipts were less than 50% compared to the same quarter in 2019, or
- Decline in gross receipts of 20% or more during the first two quarters of 2020 compared to the same two quarters in 2019
How Much Is the Credit?
For 2020, the credit is capped at $5,000 per employee.
For 2021, the cap increases to up to $21,000 per employee ($7,000 per quarter for the first three quarters). (Learn more.)