The latest Stimulus Bill announced an exciting new addition called the Employee Retention Credit that will allow businesses to claim more funds to support them during the pandemic. While the ERC was part of the first stimulus package, the updated rules regarding this credit will open new opportunities for businesses to claim both the ERC and the PPP.
What is the Employee Retention Credit (ERC)?
The Employee Retention Credit (ERC) is a tax credit designed to help small businesses recover from the impacts of Covid-19 on their business. The ERC is NOT a loan, it is a tax credit, meaning that it may not have to be repaid. In the first Government stimulus package, businesses were only allowed to claim one of the PPP or the ERC, not both. That rule has not been changed, and now businesses can claim both funding opportunities, providing much-needed relief and help.
Helpful Tips about ERC
The funding does not arrive as quickly as PPP does. The IRS will send a check as soon as your ERC filing has been processed, but that process can take over 4 months.
Make sure you are not using the EID credit towards the “qualified wages” for the ERC.
Businesses can technically claim the ERC three times. Once for 2020, and twice for 2021.
Claim the ERC
COS Accounting has partnered with Reliant Funding to provide the Employee Retention Credit as an additional resource. They will help you claim the maximum amount that you qualify for and file as quickly as possible since funds can take so long to arrive.
