The pandemic has taken a toll on us all, especially business owners. To help, the government has put many programs in place like the Employee Retention Tax Credit (ERTC). Though the Employee Retention Tax Credit program has ended, that doesn't stop employees from receiving it. Businesses have up to three years to look back and determine if any wages are eligible for the program. If you think that your business could claim this credit, Benchmark Human Capital can help. Benchmark can conduct a tax credit study to see if your company qualifies for the ERTC and get you the money you deserve. Contact us today to learn more about the ERTC and request a proposal.
Which Employers are Eligible to Claim the Employee Retention Credit
Which Employers are Eligible to Claim the Employee Retention Credit
A Variety Of Businesses
Most employers, following the American Rescue Plan Act, can qualify for the credit. Universities, hospitals, and other large organizations are even eligible to qualify. As long as your company fits the criteria outlined by the IRS, you have the potential to receive the credit.
Businesses That Saw A Significant Decrease in Gross Receipts
If your business saw a significant decrease in gross receipts you could qualify for the credit. Per The Cares Act, if your gross receipts were 50% less than where during a calendar quarter as compared to the same quarter in 2019, you can qualify for the Employee Retention Tax Credit. The Consolidated Appropriations Act and The American Rescue Plan Act also have similar stipulations concerning dips in gross receipts as compared to a quarter in 2019.
Recovery Startup Business
As another part of the American Rescue Plan Act, some businesses can qualify for the credit if they can be recognized as a recovering start-up business. To qualify, the business has to have begun operation after Feb. 13, 2020, and have gross receipts under one million dollars during that period. However, if a business qualifies for this, they forfeit their qualification for any other qualifying classifications.
A Suspended Business
A business that was fully or partially suspended can qualify for the ERTC. In addition, if your business’s hours of operation were reduced due to government restrictions, you can get the credit to hopefully recover these costs. The credit can only apply to the portion of the quarter that was suspended, not the whole quarter.
Hopefully, this guide helped you understand and determine if your business qualifies for the ERTC. With a little research and help, you can attempt to make up for the costs and profits that were lost during the pandemic. Turn to the experts at Benchmark Human Capital for assistance in reaching your goal by conducting a tax credit study. Contact us and request a proposal today!