Who qualifies for the employee retention tax credit?

The employee retention tax credit is available to employers who were operating in business as of February 15, 2020, fully or partially suspended operations or were forced to reduce hours of operations to comply with government orders, and experienced a decline in sales due to the pandemic. You will need to have had 100 or fewer full-time employees to claim for 2020, and 500 or fewer for 2021.

If your business experienced at least a 20% loss of revenue in any quarter in 2021 compared to the same quarter in 2019, or a 50% decline in sales in 2020 compared to the same quarter in 2019, you are eligible for ERC benefits.

Is my company eligible for Employee Retention Credit in 2023?

The complete eligibility criteria are complicated, in part because the ERC program has undergone numerous changes since its inception.  For more detailed information about who qualifies for the employee retention tax credit, please consult a qualified tax professional or call American Financial Tax today.

If I received PPP, can I still be eligible for ERC?

The short answer is, yes! Your business can still qualify for the Employee Retention Credit even if it participated in the Paycheck Protection Program, thanks to the changes enacted with appropriations in 2021 that allowed business owners to take advantage of both programs.

The Consolidated Appropriations Act (CAA) of 2021 also increased the amount of ERC benefit businesses can receive.

If you received the PPP and you’re eligible to receive the ERC, you can file for the Employee Retention Credit retroactively using IRS form 941-X. In filing, you will be asked to indicate the quarters you are claiming the credit.

Be sure to discuss your eligibility with a qualified tax professional who will understand all the nuances of both programs or call American Financial Tax; our proprietary software was developed by ERC specialists and it is up to date with the latest information for 2023.

Is the ERC a Cash Advance?

Not only can the credit be applied to employment taxes the business owes, but if your business has fewer than 500 employees, you can receive a cash advance for the amount of the credit to use toward your payroll expenses — provided that the credit you’re eligible for is more than the taxes you would owe. This advance is distributed directly by the IRS.

Can my CPA file for my ERC?

It is important to remember that you must meet certain deadlines in order to claim the credit and receive the associated benefits. The deadline for 2020 was extended to July 15th 2021, but you should take steps now to ensure that you have all the information and documentation required to qualify before this deadline passes.

If your accountant or CPA is not an ERC specialist, they are likely to take weeks wading through the complicated eligibility criteria and filing process. Meanwhile, during those weeks, other business owners are successfully filing for their credits. There is a limited amount of funds available — don’t let a filing delay cost you from receiving your credit!

ERC Specialists Mean Rapid Expedited Filing

Our team of professionals is here to help you understand who qualifies for the employee retention tax credit, how to apply, and what other resources may be available. Contact us today to get started on the path towards understanding who qualifies for the employee retention tax credit and taking the necessary steps to apply for the credit.

By taking the time to understand who qualifies for the employee retention tax credit, you can rest assured that your business will receive the benefits it deserves and is entitled to. American Financial Tax makes it our mission to help businesses of all sizes take advantage of these credits, save on taxes, and get back on track during these unprecedented times.

Online ERC Eligibility Software App

American Financial Tax has developed proprietary software that we’ll use to evaluate your eligibility and calculate the amount of grant you can receive — and we’ll even file the paperwork for you with expedited processing!

There are limited funds available for this program so a quick application process is key. While some firms take months to process an application, the business owner runs the risk of losing out on funds they are entitled to receive.

American Financial Tax takes pride in helping business owners who qualify receive these funds quickly and efficiently.

Don’t let the employee retention tax credit pass you by – contact American Financial Tax today to get started! We’ll help you understand who qualifies for the credit and how to maximize your savings. With our expertise, your application process will be worry-free and you’ll get the funds you need to protect your business in this difficult time.

Contact us today for more information or to get started on your application! We look forward to helping you navigate who qualifies for the employee retention tax credit and make sure that you get the funds you deserve. Don’t wait – the funds available are limited!

Employee Retention Credit Expanded Benefits

The ERC program has expanded since its inception to provide additional opportunities for businesses to qualify, and increase the amount of the credit a business may receive. In 2020, the ERC gave eligible businesses a refundable credit on their taxes of up to $5,000; this was calculated as a per employee eligibility of one-half of up to $10,000 in qualified wages. In 2021, the American Rescue Plan Act increased that amount to 70% per $10,000 of eligible employee’s wages per quarter, making the potential credit $26,000 per employee. As noted in “Does Employee Retention Credit Affect Tax Return?“, the program was phased out earlier than expected so the $7,000 maximum per quarter only applies to the first three quarters of 2021.


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