Small businesses should consider their eligibility for Employee Retention Credit (ERC) in 2021, while claiming tax credits for 2020. This is a financial relief resource due to Covid-19, which allows for refundable tax credit to help a business with their cost of keeping their staff employed. ERC is apart of the CARES Act, and your businesses may be able to claim it even if you received a PPP loan. It is active through the end of 2021 and can be claimed retroactively (back to march 2020). Ultimately, the maximum yearly benefit for 2021 is $28,000 per employee.
Below is a flow chart to help you determine your business's eligibility based on the requirements to claim ERC. These include a full or partial closure due to a government order (meaning if your business was considered non-essential) and a decline in gross receipts. If you qualify or have other questions, give us a call at (850) 934-4288 to schedule an appointment.
