Employee Retention Credit
Over the past couple of years, the government has made large strides using the Employee Retention Credit (ERC) Act to help businesses with their financial struggles.
Using the ERC, businesses can earn thousands of dollars in tax credits just for retaining employees through the pandemic (up to $26,000 per employee). In 2021, PayNW helped clients gain over 115 million dollars in ERC tax credits. The best part... It's not too late for businesses to collect the ERC credits they're owed! Let PayNW assist you in navigating the changes to ERC and determining your eligibility.
Businesses can get started with determining eligibility by clicking here, while PayNW clients can get started with their 2020 ERC and 2021 ERC return below:
What is Employee Retention Credit (ERC)?
Even though the ERC program has technically ended, businesses can still request credits until 2024. The ERC was originally created as refundable tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020, to Dec. 31, 2021. Here are some common questions we receive regarding ERC:
Is ERC still active? While businesses can no longer pay wages to claim the Employee Retention Credit, they can conduct a lookback to determine if wages paid after March 12, 2020, through the end of the program are eligible. If eligibility is determined, businesses can claim the credit retroactively by filing an amended tax return.
Where do people start to claim ERC? Fill out this form to determine your eligibility.
Who is eligible and what are the qualified wages? Businesses that were impacted by the pandemic, as well as certain other criteria.
If a business claims ERC, does that prevent them from claiming other credits? While initially businesses who received a PPP loan were ineligible, as of 2020 those restrictions have ended.
Is it too late to claim? Nope! Businesses have until April 15, 2024, to file amended returns for Q2, Q3, and Q4 of 2020, and until April 15, 2025, to file amended returns for all 2021 quarters.
Ask Us a Question About
ERC Credits and Eligibility!
Have a quick question about ERC? Need some help determining your eligibility? Fill out the form on the right and we'll get back to you with an answer!
Start to Determine Your Eligibility Today!
We understand that ERC eligibility standards and requirements can be confusing and hard to work through. That's why PayNW is here to help do the work for you. By answering just a few question, we can start to determine your ERC eligibility.
