Employee Retention Credit
EisnerAmper’s Employee Retention Credit ("ERC") Knowledge Center offers guidance to help you understand recent changes and enhancements to the 2021 ERC program. The Employee Retention Credit now provides a refundable payroll tax credit for 50% - 70% of qualified wages paid by eligible employers to certain employees during the COVID-19 crisis.
The EisnerAmper Employee Retention Credit Response Team is available to provide the most comprehensive and timely information possible. Follow our ERC flowchart below to learn more about this potentially lucrative payroll tax credit.
As amended by the American Rescue Plan Act of 2021
FOR calendar year 2021 ONLY
Severely financially distressed employers - Starting with Q3 ‘21 the limitation for large employers does not apply if the employer experienced at least a 90% decline in gross receipts compared to the same quarter in 2019.
Recovery start-up businesses (“RSB”) - Starting with Q3 ’21 businesses that began carrying on a trade or business after February 15, 2020 and had an average annual gross receipts of up to $1,000,000 are not required to have suspended operations or a significant decline in gross receipts in order to be eligible for the ERC. The ERC is limited to $50,000 per quarter for a RSB.
Subject to future legislation and FAQ updates. IRS FAQ hyperlinks lead to relevant FAQs on IRS website. Note that the IRS has NOT yet updated the FAQs for the amendments. If PPP funds are claimed, only wages above PPP forgiveness amount are eligible for credit. This guide is intended to provide general information to our clients and friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter. This guide is an overview and is subject to change at any time. You should consult your accounting and tax advisor for your specific situation.
The ERC Response Team
For questions regarding ERC, please complete the form below.