The surest way to be eligible for the maximum employee retention credit is through the revenue criteria. If you suffered financially during the pandemic, you will automatically be eligible for the IRS credit. Throughout partnership with Payroll, LLC, one of the largest ADP payroll partners, will also pursue the FFCRA credit available to your business. The Families First Coronavirus Response Act (the "FFCRA"), as amended by the COVID-related Tax Relief Act of 2020, provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19
Please keep in mind that unlike the PPP loan, where you were required to provide financial statements to your bank/lending institution, the IRS does NOT require any supporting documents to be provided with your ERC. It is an honor system like when you prepare your corporate or personal tax returns with your accountant. We will not be requesting any financial statements and will rely on the answers you provide, to the best of your ability.
The IRS is offering a partial refund of your payroll expenses based on ONE of the following criteria:
- You had a drop in revenues in 2020 or 2021 compared to 2019
- You were restricted from running your business in some way (capacity limits, forced to reduce your hours, etc.)
If either of these apply to your business, you are eligible for the credit.
Learn more about the program to assist with retrieving your maximum credit.
Eligible businesses get money refunded based on W-2 employees.
