The employee retention credit is a fully refundable tax credit that eligible employers request to cover certain payroll taxes. It's not a loan and doesn't have to be repaid. For most taxpayers, the refundable credit exceeds the payroll taxes paid in a credit-generating period. Receive an initial estimate from the ERC at no cost, with a minimum investment of time up front.
Use our secure portal to upload your 941 statements, PPP loan documents, and raw payroll data. ERC Today is an employee retention credit service that helps companies assess their eligibility, complete a thorough analysis of their applications, provides guidance on the application process and documentation, provides specific experience in programs that a regular CPA or payroll processor might not know well, and executes a quick and simple process from start to finish, from eligibility to applying and receiving refunds. Employers who use a Professional Employers Organization (PEO) or a Certified Professional Employer Organization (CPEO) do not file an individual 941 on their behalf, so it's important that they understand how they would reconcile this information and receive credit. The employee retention credit under the CARES Act encourages companies to keep employees on their payroll.
The notice includes guidance on how employers who received a PPP loan can retroactively apply for the employee retention tax credit. Previously, the Consolidated Appropriations Act expanded the requirements to include companies that applied for a loan under the Paycheck Protection Program (PPP), including borrowers from the initial round of the PPP who were not originally eligible to apply for the tax credit. All salaries that are subject to FICA taxes qualify, and you can include qualifying health expenses when calculating the tax credit. If you have already filed your tax returns and now realize that you are eligible for the ERC, you can request them retroactively by filling out the employer's adjusted quarterly federal tax return (941-X).
In addition to the employee retention credit services offered by the company, Aprio works with other credits to increase the company's liquidity. This law allowed some employers most affected by financial difficulties to be able to claim the credit against the qualified salaries of all their employees, rather than just those who did not provide services. If you have problems applying for the ERC, it may be useful to consult with a tax professional. The ERC provides eligible employers with payroll tax credits for the salaries and health insurance they pay to employees.
Leave under the FFCRA included paid sick leave and family leave, which, when taken under the provisions of the law, offered businesses the opportunity to apply for a tax credit. The ERC is a valuable tax relief measure for both employers and employees, and can help retain key staff during these difficult times. This means that employees will not have to pay any additional taxes on the salaries covered by the ERC. To apply for credit for previous quarters, employers must file Form 941-X, Employer's Adjusted Quarterly Federal Tax Return or Request for Refund, for the applicable quarters in which qualifying wages were paid.
This law increased the employee limit to 500 to determine what salaries are applicable to the credit.
