Your Company Might Be Eligible For Employee Retention Tax Credits

At the outset of the COVID pandemic in March 2020, the U.S. Congress created the Employee Retention Tax Credit (ERTC) as a way to provide small businesses with financial relief to get them through the widespread, government-mandated shutdowns. Federal lawmakers have expanded the tax credit two times since then so the ERTC could help even more small businesses cut down their federal tax bill.

As the U.S. Chamber of Commerce (USCC) explains here, to qualify, private companies must meet one of the following criteria:

• The company was ordered by a local government to fully or partially shut down in 2020 or 2021.
• Gross receipts for a single quarter of 2020 fell by 50 percent versus the same quarter of 2019 (for the 2020 tax credit).
• Gross receipts for a single quarter of 2021 decreased by 20 percent versus the same quarter of 2019 (for the 2021 tax credit).

For companies with 100 or fewer full-time employees, all of those employees, regardless of whether they are providing service during the designated period, count toward credit eligibility. For companies with more than 100 employees, only full-time employees who are being paid but not providing service due to shutdowns and/or a reduction in gross receipts count. Click the link above to find out more about how to claim this credit.