Payroll ERTC
FAQs
WHAT IS THE EMPLOYEE RETENTION TAX CREDIT (ERTC)?
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. Eligible employers can claim the ERC on an original or adjusted employment tax return for a period within those dates.
Who is eligible?
An employer is eligible for the ERC if it:
- Sustained a full or partial suspension of operations limiting commerce, travel or group meetings due to COVID-19 and orders from an appropriate governmental authority or
- Experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021 or
- Qualified in the third or fourth quarters of 2021 as a recovery startup business.
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My business received a PPP loan. Is it still eligible for the ERC?
YES your are eligible.
Since the enactment of the Consolidated Appropriations Act, 2021 (CAA) in December 2020, PPP recipients can claim the ERC retroactive to March 13, 2020 on qualified wages that aren’t paid for with forgiven PPP loans.
Wages paid with PPP funds are not considered qualified wages. (This is sometimes called “double-dipping” and it’s not allowed.)
Do 1099 contractors qualify for the ERC?
You cannot claim a 1099 worker as an eligible employee for your business. Only W-2 employees qualify.
How long does it take to receive my credit?
You will receive refund checks from the US Treasury in 4 – 8
months depending upon how backed up the IRS is.