Employee Retention Credit for Business
Lopez Finance helps secure ERC tax credits for eligible businesses affected by COVID-19.
Employee Retention Credit for Business
Lopez Finance helps secure ERC tax credits for eligible businesses affected by COVID-19.
What is ERC?
The Employee Retention Credit (ERC) is a 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
Two ways you can qualify
01. You qualify if...
Your business affected by a mandated full or partial suspension of business
Businesses impacted by closures and restrictions on hours or capacity automatically qualify. This provision also extends to suppliers of a business. If a business can prove its operations were/are impacted as a result of the inability to obtain goods or materials from its suppliers, it may qualify for ERC.
02. You may qualify if...
Were your business’ gross receipts down 50% compared to the same quarter In 2020?
The second way to qualify, is based on a significant reduction in gross receipts. In 2020 your business gross receipts must be down 50% compared to the same quarter of 2019 in order to qualify. In 2021 this requirement is even easier to meet, because you only need a 20% reduction in gross receipts to meet the test.
You can receive this credit even if you were awarded Paycheck Protection Program (PPP) funding. However, before you apply for PPP forgiveness, it is important to speak with a professional regarding maximizing PPP forgiveness and maximizing the ERC, as the two are interrelated.
