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{"id":888,"date":"2023-02-26T22:32:30","date_gmt":"2023-02-26T22:32:30","guid":{"rendered":"https:\/\/ghorbaghe.me\/?p=888"},"modified":"2023-02-26T22:32:45","modified_gmt":"2023-02-26T22:32:45","slug":"who-is-eligible-for-the-employee-retention-credit-erc-a-guide-for-small-businesses","status":"publish","type":"post","link":"https:\/\/ghorbaghe.me\/who-is-eligible-for-the-employee-retention-credit-erc-a-guide-for-small-businesses\/","title":{"rendered":"Who is Eligible for the Employee Retention Credit (ERC)? A Guide for Small Businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Employee Retention Credit (ERC) is a refundable tax credit that&#8217;s available to eligible employers who have been significantly impacted by the COVID-19 pandemic. The credit is designed to help businesses keep their employees on payroll, even if they&#8217;re not currently able to operate at full capacity. But who exactly is eligible for the ERC, and how can small businesses determine if they meet the criteria?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we&#8217;ll provide a comprehensive guide to the ERC eligibility requirements, including the different criteria that businesses must meet to qualify for the credit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first requirement for eligibility is that the business must have experienced a significant decline in gross receipts. Specifically, the business must have experienced a decline of at least 20% in gross receipts for a calendar quarter in 2020, compared to the same quarter in 2019. Alternatively, if the business began operations in 2020, it must have experienced a decline of at least 20% in gross receipts for the second or third quarter of 2020, compared to the first quarter of 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Must check the <\/span><a href=\"https:\/\/erccreditfaq.com\/\"><b>ERC FAQ<\/b><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another eligibility criterion is that the business must have been subject to a government order to partially or fully suspend operations due to COVID-19. This includes orders related to social distancing, business closures, and other measures that impacted the ability of the business to operate normally.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are also other requirements related to the size of the business and the number of employees. Generally, businesses with 500 or fewer employees are eligible for the ERC, although there are some exceptions for certain industries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Importantly, businesses cannot claim both the ERC and the Paycheck Protection Program (PPP) for the same wages, so it&#8217;s essential to carefully consider which program is best for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To claim the ERC, businesses will need to file Form 941, the employer&#8217;s quarterly payroll tax return, and include the applicable amount of the credit on that return. If the ERC exceeds the amount of payroll taxes owed, the excess credit will be refunded to the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may like to check the <\/span><a href=\"https:\/\/erccreditfaq.com\/faq\/\"><b>ERC Questions<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In conclusion, the Employee Retention Credit can be a valuable resource for small businesses impacted by the COVID-19 pandemic. It&#8217;s essential to understand the eligibility criteria and how the credit works to determine if your business is eligible. With the right information and guidance, businesses can use the ERC to help retain their employees and navigate these challenging times.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Employee Retention Credit (ERC) is a refundable tax credit that&#8217;s available to eligible employers&#8230;<\/p>\n","protected":false},"author":1,"featured_media":889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Who is Eligible for the Employee Retention Credit (ERC)? 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