Employee Retention Credit

Benefit from taking care of your employees during the pandemic.

Leverage the Employee Retention Credit (ERC)

Claim Up to $26,000 in refundable credits per employee.
COVID-19 brought about unprecedented challenges for individuals, employers, everyone – and it is still doing so. Fortunately, the CARES Act includes a tax credit designed to reduce the tax burden for companies that retained their employees during the pandemic. This benefit provides businesses the ability to claim up to $26,000 per employee on the payroll between March 12, 2020, and September 30, 2021. 

At HITO, our tax credit experts work with eligible businesses to optimize their tax strategy and maximize ERC. Schedule a complimentary consultation today to determine your eligibility.

Introducing the Employee Retention Credit (ERC)

The ERC was explicitly designed to help small businesses (and their employees) survive and manage the challenges brought about by COVID-19. 

Businesses that faced disruptions from March 12, 2020, through September 30, 2021, and continued to pay their employees can use the ERC to minimize their payroll taxes for 2021 and set up their business for long-term success in a post-COVID world.

Eligibility Requirements

When it comes to eligibility, the ERC is available for businesses that experienced a decline in gross receipts of 50% in 2020 and/or 20% in 2021 when compared to the same period in 2019.The ERC is also available for businesses that had to fully or partially suspend its operations due to government orders / mandates. Such mandates include social distancing measures, capacity limits and pandemic-specific OSHA requirements.

To determine eligibility based on additional details, click here.

PPP Loans and ERC Eligibility

Though the PPP (Paycheck Protection Program) and ERC were both created to help preserve jobs and protect American businesses, they are entirely different programs. Organizations that received PPP loans are still eligible for ERC, even their PPP loan has been forgiven.

If you tried to apply for ERC in 2021 and were rejected, we have some good news for you. The Consolidated Appropriations Act of 2021 removed the limitations on claiming ERC and PPP at the same time. This provides previously rejected applicants the opportunity to qualify for the ERC.

Claims Limits

Through the ERC, businesses can claim up to $26,000 per employee between March 12, 2020, and September 30, 2021. For 2020, the credit limit is $5000 per employee per quarter.For 2021, the limit increased to $7000 per employee per quarter. The specific amount depends on the degree that the business was affected.

As tax credit experts, HITO can help you determine tax benefits that you can leverage to support your company’s growth. We develop optimized tax strategies that combine ERC and other available tax incentives to maximize your savings.

Discover. Unlock. Leverage. Tax Benefits for Your Business.