ERC Program

It’s no secret that the COVID-19 pandemic has had a serious impact on businesses and their employees. With the economic uncertainty that has come with it, many employers have had to reduce their workforce and cut wages in order to stay afloat. However, the federal government has provided some relief for employers with the introduction of the Employee Retention Credit Program. This is a grant program. Meaning you do not have to pay back the funds. Use this to pay your employees and get your business back to where it was pre-COVID.

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The Employee Retention Credit Program, or ERC, is a tax credit available to employers that are affected by the coronavirus pandemic. It is designed to provide financial relief to help employers cover expenses associated with retaining their employees, including wages, benefits and other costs. 

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Under the program, employers can receive a refundable tax credit of up to 50% of the total wages they pay to their employees, up to a maximum of $5,000 per employee. This means that employers can receive up to $10,000 per employee if they pay them $20,000 in wages. In addition, employers can receive an additional credit of up to $7,000 per employee if they are able to provide health care benefits to their employees during the taxable year. 

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The ERC is available to employers that have been impacted by the pandemic in several ways. Employers must meet certain criteria in order to be eligible for the credit, including the requirement that their business was either fully or partially suspended by a governmental order related to the coronavirus pandemic or that the employer experienced a significant decline in gross receipts. 

In addition, employers must also meet certain requirements related to the wages they pay their employees. Specifically, employers must pay wages to employees that are not greater than what they would have earned in the absence of the pandemic. This means that employers cannot use the ERC to offer higher wages than they would normally offer. 

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The ERC is available to employers for wages paid after March 12, 2020. If you got the PPP you likely qualify for the ERC program. Employers must also make sure that they meet all of the requirements in order to take advantage of the credit. In particular, employers must keep records of all wages paid to employees in order to accurately calculate the amount of the credit they are eligible to receive. 

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The ERC is a great way for employers to provide financial relief to their employees and to help them retain their workforce during the pandemic. It also provides an additional incentive for employers to bring back workers who have been laid off due to the pandemic.The CARES Act has allocated more funding for businesses affected during the COVID-19 Pandemic. With the ERC, employers can receive a significant tax credit for wages paid to employees, helping them to cover some of the costs associated with retaining their staff. 

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The ERC is a valuable program for employers who are struggling to stay afloat in the midst of the pandemic. By providing financial relief to employers and encouraging them to keep their workers, the ERC helps employers to remain competitive and to continue to provide jobs to their employees. The ERC is a great way for employers to minimize the financial impact of the pandemic and to ensure the future success of their business.