Do You Qualify for the Employee Retention Tax Credit?
You might be surprised. Find out in 3 minutes or less.
Please note: The QuickTest works best for organizations with at least one full-time employee – it doesn’t work well for most sole proprietors.
The expanded Employee Retention Tax Credit (ERTC) provides welcome relief for businesses and organizations hardest-hit by the global pandemic. Optimizing the credit for the best possible impact can be complex – especially if you have FFCRA or other wage-based credits.
Please note – we thoroughly evaluate each client’s situation, providing sound analysis and support for the ERTC refunds we prepare.
Learn more in our 21-minute ERTC master class video.
Here’s what you need to know.
2021 ERTC qualifications
For 2021, the cap increases to up to $21,000 per employee ($7,000 per quarter for Q1-Q3).
Here’s an overview of other 2021 changes:
- The definition of operations suspended by a government authority is expanded to include orders limiting commerce, travel, or group meetings due to COVID-19.
- The government order suspension is expanded to include suppliers that provide a key component of your product being partially or fully suspended due to a government order.
- Essential businesses may qualify for the credit if one of their operations or one of their affiliates was fully or partially suspended by a government order.
- Employee numbers increased to 500 or fewer (up from 100 or fewer) and more than 500 (up from more than 100).
- If the business experienced a 20% reduction in gross receipts compared to the same calendar quarter in 2019 (Not 2020!) – you also have the option to compare the immediately preceding quarter to the corresponding quarter of 2019.
- Qualified wages must be paid between January 1, 2021, and September 30, 2021.
- The maximum of qualified wages increases to $10,000 per employee per quarter with a 70% tax credit rate – for a maximum of $21,000 per employee for 2021.