The Employee Retention Credit (ERC) has been a lifeline for many businesses during the pandemic, providing a valuable tax credit to help offset the costs of retaining employees. But did you know that the ERC can also be combined with other COVID-19 relief programs to provide even more support for your business? This blog post will explore how you can maximize your relief efforts by combining the ERC with other programs.

PPP Loans and the ERC

Many businesses have already taken advantage of the Paycheck Protection Program (PPP), which provides forgivable loans to cover payroll and other eligible expenses. If you have received a PPP loan, you can still claim the ERC, but there are some restrictions. For example, you must use different wages to qualify for the PPP loan forgiveness and the ERC. In other words, you cannot “double-dip” on the same expenses. However, suppose you have additional eligible costs not covered by your PPP loan. In that case, you can still claim the ERC for those expenses.

EIDL Grants and the ERC

The Economic Injury Disaster Loan (EIDL) program also provides grants to eligible businesses. If you have received an EIDL grant, you can still claim the ERC, and there are no restrictions on using the same wages or expenses for both programs.

State and Local Grants and the ERC

Many states and local governments have also established grant programs to help businesses affected by the pandemic. If you have received a grant from your state or local government, you can still claim the ERC. However, you may need to adjust your wages or expenses to avoid “double-dipping.”

Work Opportunity Tax Credit (WOTC) and the ERC

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from certain targeted groups who have consistently faced significant barriers to employment. This credit can be claimed in addition to the ERC, but you must use different wages to qualify for both programs. However, you can claim the WOTC for new employees and the ERC for existing employees.

We Can Help

By combining these programs, you can maximize the relief your business receives during these challenging times. But with so many rules and regulations to navigate, it can be challenging to know where to start. That’s where GetMyBizRefund comes in. Our team of experts can help you navigate the complex rules surrounding these programs and ensure you claim all the relief you are entitled to. Don’t leave money on the table. Instead, contact GetMyBizRefund today to learn how we can help you combine the ERC with other COVID-19 relief programs to provide maximum support for your business.