Resources to Help You with the Employee Retention Credit

While the Paycheck Protection Program has been greatly discussed, the Employee Retention Credit is a lesser-known relief effort that can offer a significant advantages and savings for organizations affected by the COVID-19 pandemic.

We’ve developed resources to help you make sense of the Employee Retention Credit.

What is the Employee Retention Credit?
The Employee Retention Credit (ERC) is a refundable tax credit of up to $5,000 per employee. Created by the CARES Act, this credit is designed to help organizations keep their employees on payroll.

The ERC is available to businesses and nonprofit organizations during a calendar quarter if they:

  • Have been fully or partially suspended by government order during the quarter.
  • Have seen 2020 gross receipts fall below 50% of the same quarter in 2019.

How do I receive the Employee Retention Credit?
We recently broke down what you need to know about the ERC and how you can use it for your organization.

How do I report the Employee Retention Credit?
Any available ERC for Q1 and Q2 of 2020 will be reported on the Q2 quarterly payroll filing due in July. Additional options are available for monetizing the credit before the Q2 quarterly filing. Available ERC for Q3 and Q4 will be reported on the respective quarterly payroll filings for those quarters (in October 2020 and January 2021, respectively).

Learn More About the ERC
The ERC can be of great benefit to many organizations, depending on their circumstances. Knowing how to calculate the credit and how to comply with the necessary documentation will be critical.

Need help determining if the ERC is right for you?

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