Everything You Need to Know About the
Employee Retention Credit (ERC)

There's a lot of misconceptions and false information when it comes to ERC. That's why Biz Head Law works on contingency and backs up its services with an official opinion letter and audit protection.

Here's some common questions about the ERC to get you started:

• What is the Employee Retention Credit (ERC)?

A government program provides a refundable tax credit to eligible small to mid-sized businesses affected by the COVID-19 pandemic.

• Who is eligible for the ERC?

Businesses in literally every industry that were impacted by COVID-19.

• How much is the ERC credit worth?

Eligible businesses can claim up to $26,000 per employee.

• Can an employer claim the ERC and the Paycheck Protection Program (PPP) loan?

This is a common misconception. Your business may still qualify, even if it has already received the PPP loan.

• Are tax-exempt organizations eligible for the ERC?

Yes.

• How do businesses claim ERC credit?

Businesses can claim the credit on their quarterly employment tax returns or file an amended employment tax return.

• Can businesses claim the ERC for employees on leave?

Yes.

• Can businesses claim the ERC for independent contractors?

No.

• Can businesses claim the ERC for employees who were laid off or furloughed?

No.

• Is there a limit on the number of employees a business can claim from the ERC?

No.

• Is the ERC a refundable credit?

Yes.

• Can businesses claim the ERC for wages paid to family members?

No.

• Can businesses claim the ERC for wages paid to owners of the company?

No.

• Can businesses claim the ERC for health plan expenses?

Yes.

• Is there a deadline for claiming the ERC credit?

Yes, businesses must claim the ERC credit within three years of the due date of their tax return.

• Can businesses claim the ERC credit for wages paid to employees working remotely?

Yes.

• Can businesses claim the ERC credit for wages paid to new employees?

Yes.

Dispelling Some Myths About the Employee Retention Credit (ERC)

If your business was impacted by COVID-19, you could qualify for up to $26,000 per employee in stimulus funds. Check if any of the following applied to your business:

• Full or partial shutdown per government mandate

• Restrictions on the number of people in a room or building

• Inability to attend networking events or conferences

• Disruptions to your salesforce

• Supply chain interruptions

• Inability to access equipment

• Limited ability to operate

• Inability to work with key vendors

• Reduction in goods or services offered to customers

• Reduced hours of operation

• Shifts in hours to increase sanitation of facilities

• Cancellation or delay of projects

• Production timeline disruptions caused by supply chain disruptions

• And many other Covid-related impacts!

Even if your business was only nominally impacted, you could still be eligible for stimulus funds. 

Contact us TODAY to find out how we can help you obtain your Employee Retention Credit money!