Employee Retention credit

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A Simple Guide To Claim
ERC Tax Credit

A one-minute flowchart to find out whether your business is eligible for the new Employee Retention Tax Credit 2021, designed by our Certified Public Accountants.
Fill out the form to receive your FREE ERC Flowchart PDF or call us at (818) 898-9911 or email us at info@league.inc


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    CPA's

    Each business account is overseen by a licensed CPA who provides full ERC Audit protection

    +$21,000

    Maximum payout for each employee awarded in tax credits towards your business

    $200K

    Average Credit Size per ERC Application
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    Receive up to $21,000 Cash for Each W-2 Employee

    The Employee Retention Credit (ERC) is a tax credit introduced by the U.S. government as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020. Its purpose was to provide financial assistance to businesses and organizations affected by the COVID-19 pandemic to help them retain their employees.

    The ERC was designed to incentivize employers to keep their employees on the payroll during periods of economic uncertainty and disruption caused by the pandemic. It provided eligible employers with a refundable tax credit against certain employment taxes. The tax credit provided a percentage (initially 50% and later increased to 70%) of qualified wages paid to employees, up to a certain limit. The maximum qualified wages per employee were $5,000 per year in 2020 and $7,000 per quarter in the first three quarters of 2021.

    As of April 15, 2024, business owners can no longer claim any ERC for the year 2020. There is still Tax Credits available for 2021 that you may qualify up to $21,000 per W-2 employee.

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    Frequently Asked Questions

    Who is eligible for the Employee Retention Tax Credit?

    Eligible employers include those who experienced a significant decline in revenue or were fully or partially suspended due to COVID-19. Specifically, employers with gross receipts that experienced a decrease of more than 50% in the comparable quarter in 2020, or less than 80% of the comparable quarter in 2021 when comparing to the 2019 quarter are eligible. Those who were fully or partially suspended by government order are also deemed eligible.

    Can I qualify for Employee Retention Tax Credit if I am a 1099 contractor?

    No, as a 1099 contractor, you are considered self-employed and not an employee of the company. Therefore, you cannot qualify for the Employee Retention Tax Credit based on your own wages or compensation. However, if you have employees working for you, you may be eligible to claim the credit for wages paid to those employees if you meet the eligibility criteria.

    What if my revenue went up in 2020 or 2021? Can I still qualify for Employee Retention Tax Credit?

    If your business experienced an increase in revenue in 2020 or 2021 compared to the same period in the prior year, you may still be eligible for the Employee Retention Tax Credit if your business was impacted by a government shutdown order or a significant decline in gross receipts. Specifically, you may qualify for the credit if your gross receipts in any quarter of 2020 or 2021 were less than 80% of the gross receipts in the same quarter in 2019. Alternatively, if you were not in business in 2019, you can compare your gross receipts in any quarter of 2020 or 2021 to the same quarter in 2020. If your gross receipts declined by more than 20%, you may be eligible for the credit.

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