Dao CPA, P.C. – ERC Tax Credit
Employee Retention Tax Credit due to COVID-19
Generally speaking, Employee Retention Tax Credit was established to help employers whose operations were suspended, either partially or fully, by a government order due to COVID-19, OR had a significant decline in gross receipts, OR began carrying on business after February 15, 2020.
This credit provides up to $5,000 per employee, per year for 2020, and up to $7,000 per employee, per quarter for 2021.
ERC is very different from PPP. While PPP was carried out via banks, ERC is a tax credit, which can be claimed via tax forms.
Whether your business is a stand-alone business or part of a group, Dao CPA, P.C. would be happy to help you understand how the ERC tax credit affects your income taxes, and assist you with preparing the refund claims, when applicable.