The EFPR Group of Companies

For over 60 years, our knowledgeable and experienced team of CPAs and business consultants have been serving individuals and businesses in Western New York and around the nation.

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Employee Retention Credit

The Employee Retention Credit (ERC), which was created to encourage employers to keep their workforces intact during the COVID-19 pandemic, has been with us for a year. But questions about it remain for many employers. With the new American Rescue Plan Act (ARPA) extending the credit and expanding eligibility — and the credit worth as much as $21,000 per employee for 2021 — employers should take another look to see if they are eligible for the program.

Step 1 – Determine if your Business Qualifies

Review the questions below.

1.) Did the business report a 50% or greater decline in revenue in any calendar quarter in 2020, compared to that same quarter in 2019?

2.) Did the business report a 20% or greater decline in revenue in any calendar quarter in 2021, or the fourth quarter of 2020, compared to that same quarter in 2019?

3.) Did the business endure the inability to obtain critical goods or materials from its suppliers that were required to suspend operations due to a COVID-19 related Government order?

4.) Was the business forced to reduce operating hours due to a COVID-19 related Government order?

5.) Did the business have a Covid-19 related, Government-mandated, suspension of any portion of operations during any quarter(s) in 2020, or in the first 3 quarters of 2021? If so, did this segment of operations account for at least 10% of total revenue, in the same quarter(s) of 2019?

6.) Did the business have a Covid-19 related, Government-mandated, suspension of any portion of operations during any quarter(s) in 2020, or in the first 3 quarters of 2021? If so, did this segment of operations account for at least 10% of total employee service hours, in the same quarter(s) of 2019?

7.) Did your company begin conducting a trade or business after 2/15/2020, and your total average annual gross receipts for the three previous tax years were less than or equal to $1 million?

Step 2 – Contact the Experts

If you answered yes to any of the questions above, your business may qualify to receive a refundable tax credit based on the wages paid to employees. Complete the below form to talk to one of our accountants with help determining the amount of credit your business may be eligible for.

Additional Resources:

November 2, 2021

ERC Webinar Recording

August 10, 2021

IRS Issues ERC Guidance as Congress Mulls Early Termination

June 28, 2021

Eligible Businesses: Claim the Employee Retention Tax Credit

March 30, 2021

Make the Most of ERC

March 24, 2021

ERC Webinar Recording

For more information call

800.546.7556