Have You Applied for Your COVID Stimulus Check Yet?

For eligible companies, there was a reduction in payroll taxes you were entitled to as a stimulus for your company’s survival through the COVID pandemic: the Employee Retention Credit (ERC). Don’t be confused—unlike PPP, it is NOT a loan. These are credits that Congress granted, against payroll taxes payable, for retaining employees instead of laying them off. If your company has not already claimed the credits, it is money your business has already paid in payroll taxes, which you can recover as a refund.?

Determining if your company is eligible is as simple as contacting your CPA or tax advisor. Many, though, may not have the expertise needed to take your company through the entire eligibility determination process. To ensure our members that were impacted by the pandemic receive this valuable assistance they are entitled to, we have partnered with?ERC Today, an accounting firm specializing?exclusively?in Employee Retention Credit (ERC) recovery.

?The Details

Employee Retention Credits (ERCs) were enacted as part of the CARES Act in 2020 to incentivize businesses to keep staff on the payroll during the pandemic. Eligible employers receive payroll tax credits for wages and health insurance paid to W-2 employees. Originally, companies were only eligible for ERC?or?the Paycheck Protection Program (PPP), not both. However, those guidelines changed in 2021 allowing businesses eligibility for both PPP?and?ERC.?

Under the ERC legislation, eligible employers can claim payroll tax refunds of as much as $26,000 per employee for keeping “qualified” W-2 employees on their payroll in 2020 and 2021. And once received, those funds can be used however the business owner wishes. Additionally, a Recovery Startup Business (a business that started after Feb. 15, 2020), can qualify for ERC up to a maximum of $100,000.?

ERC credits are available to both for-profit and tax-exempt businesses with W-2 employees that experienced either:

?????fully or partially suspended operations due to federal, state, or local governmental orders or proclamations limiting commerce, travel, or group meetings due to COVID-19; OR

?????a significant decline in gross receipts during any calendar quarter in the years 2020 and 2021.?

Likely industry sectors for ERC recovery include restaurants, food services, vending services, gyms, bars, retailers, charter schools, car dealers, manufacturers, and others. ERC credits are also available to Recovery Startup Businesses started after February 15, 2020, with revenues under $1 million.?

ERC Today?provides a no-cost opportunity for SBAM members to see if their company qualifies and to learn about how much they might recover from these credits for W-2 employees.?ERC Today?specializes in (i) determining eligibility and (ii) maximizing the amount of these refunds.?ERC Today?works only on a contingency fee basis; they don’t get paid unless or until you get paid!

More information on the SBAM partnership with?ERC Today?and how members can sign up is available at?https://www.sbam.org/employee-retention-credit/ . There is also a link to the initial questionnaire which takes about 10 minutes to complete.

?Limited Time Left to Apply!

Applications for the Employee Retention Credit must be submitted within three years following the initial payroll tax filing, so it is important to note that businesses have only 10 months left to apply for their initial ERC refunds from payroll taxes in 2020. Additionally, as with the PPP, the laws and regulations are subject to change at any time, so it is best to act on this opportunity as soon as possible.

SBAM members are encouraged to contact John Galles at?ERC Today?to learn more or follow the link to the initial questionnaire on the partnership portal:?https://erctoday.com/sbam/ .