The COVID-19 pandemic has caused unprecedented disruption to small businesses across the country. Many have been forced to close their doors, while others have struggled to keep up with rent, payroll, and other expenses. To help these businesses stay afloat, the government has implemented several relief programs, including the Employee Retention Credit (ERC).

What is the ERC?

The ERC is a refundable tax credit designed to encourage businesses to keep employees on their payroll during the pandemic. Eligible employers can claim a credit of up to 70% of qualified wages paid to employees, up to a maximum of $28,000 per employee per year.

Who is eligible for the ERC?

The ERC is available to businesses that have experienced a significant decline in gross receipts or were fully or partially shut down due to a COVID-19-related government order. It is also known for companies that have experienced a considerable decrease in gross receipts for any quarter in 2020 or 2021 compared to the same quarter in 2019.

How is the ERC helping small businesses?

The ERC is helping small businesses in several ways. First, it provides a financial lifeline for companies struggling to make ends meet during the pandemic. Second, it helps businesses retain employees, which is critical for maintaining business operations and keeping the economy moving. Finally, it allows companies to plan for the future by providing them with much-needed stability and certainty during an uncertain time.

How can small businesses claim the ERC?

Small businesses can claim the ERC by filing Form 941, the quarterly employment tax return. The credit can be applied against the employer’s portion of Social Security taxes. If the credit exceeds the Social Security taxes owed, the employer will refund the excess.

We can help!

At GetMyBizRefund, we understand the challenges small businesses face during the pandemic. That’s why we are committed to helping companies claim the ERC and other relief programs they are eligible for. Our team of experts can help you navigate the complex application process and maximize your benefits. Contact us today to learn how we can help your business survive and thrive during these challenging times.