What is the Employee Retention Credit?

Putting it simply, the Employee Retention Credit (ERC) is exactly what it sounds like—business owners are being rewarded for their efforts to keep employees on payroll during the pandemic. We are working closely with decision makers in Washington on this nationwide effort to help the U.S. economy not only recover from the pandemic, but to come back stronger than before.

Congress recently passed a $1.9 trillion COVID-relief bill to streamline this recovery, and the Employee Retention Credit is one of the most lucrative opportunities business owners should take advantage of as we work towards our future and leave this pandemic behind us.

Below you will find additional information to better understand the ERC, estimate your credits who can benefit and how to get started.

How to Qualify

The ERC has gone through significant updates, so even if you and your advisor have reviewed this before, we encourage you to take another look with one of our specialists to uncover all qualifying activities and wages that will maximize your benefit and/or refund. Unfortunately, the program is not yet living up to its full potential because many business owners are prematurely disqualifying themselves due to misinformation and rumors about who does or doesn’t qualify.

The overarching theme for businesses to focus on is how the coronavirus pandemic impacted our economy as a whole…so even if your business grew or was deemed an essential business during the pandemic, there are more qualifying factors to look at before you disqualify yourself.

This payroll tax credit is available to essential and non-essential businesses in any industry who endured the effects of the pandemic. Government-mandated shutdowns—on federal, state, and local levels—are a major factor that many business owners had to adapt to over the last year. For example, a restaurant that could not let customers dine indoors or a manufacturer that had to slow their operations due to new health and safety restrictions are a couple of examples that business owners present to us every day.

Here are some impacts to consider that qualify your business for the Employee Retention Credit:

  • Full shutdowns
  • Partial shutdowns
  • Interrupted operations
  • Supply chain interruptions
  • Inability to access equipment
  • Limited capacity to operate
  • Inability to work with your vendors
  • Reduction in services or goods offered to your customers
  • Cut down in your hours of operation
  • Shifting hours to increase sanitation of your facility
The New and Improved COVID-Relief Bill

Originally introduced in the CARES Act, the employee retention credit gained traction but was not as accessible to business owners as it is today. Guardrails around PPP, employee counts, and revenue restrictions made it difficult to reach all the businesses who were entitled to benefit. Congress quickly realized that we weren’t reaching enough businesses with version 1.0 of the ERC, so they addressed these issues with the passage of the Consolidated Appropriations Act of 2021 (CAA).

Consolidated Appropriations Act of 2021

In response to the rapid effects of the pandemic on our economy, the CAA was revamped in 2021. This was officially approved and signed by Biden on March 11, extending deadlines and eligibility requirements for the Employee Retention Credit and other incentives. Another exciting update is the fact that businesses can now claim the ERC alongside PPP and other paycheck protection programs. Even if you already claimed PPP and got your loan forgiven, you still qualify for this credit!

Small and medium-sized businesses make up over 99% of all U.S. businesses in the U.S. When big players like Google, Apple, and other large companies are the only ones thriving, our economy is not in a good place. In 2021, the new COVID-relief bill expanded the guidelines to help more businesses qualify. Even if you were in losses or do not have tax liability, you can still benefit by receiving a substantial refund equal to each and every dollar above your company’s tax liability.

Value of the Employee Retention Credit

The Employee Retention Credit was revamped in 2021 to reach more businesses and help more Americans stay employed. This is achieved by providing a refundable credit to offset or potentially eliminate payroll tax for business owners who were impacted by the pandemic. This is currently one of the largest credits available to business owners, delivering thousands of dollars in credits per employee with qualified wages.

A manufacturing company with an annual revenue of $115 million and 246 employees received a credit equal to $1.06 million in Q1 of 2021.

A few of their qualifying factors:

30% drop in quarterly revenue

Numerous projects were canceled or delayed to COVID-related disruptions

Delayed production timelines caused by supply chain disruptions

Estimate Your Credits and Eliminate Payroll Tax Before the Deadline to Claim

Get $1000s per Employee

Since Congress passed the latest relief bill, we’ve helped many businesses and their advisors reduce or eliminate payroll tax, and even receive a refund. It’s important to review your impact and file with our team before the upcoming deadline. We have 1,000+ experts with hands-on experience working in every industry. Our specialists are passionate about helping U.S. businesses and will work closely with you and/or your financial advisors to maximize your credit while minimizing risk.

In addition to helping you claim the ERC, we will also review your business activity in relation to other credits you may qualify for to uncover more funding opportunities for your business to hire/retain more employees and invest in capital necessary to grow your business.

We are committed to reinforcing our economy and believe in the spirit of American business owners. We want to ensure nothing gets in the way of our country becoming #1 once again—not even a global pandemic!

How to Apply for the Employee Retention Credit

With alliantgroup, there is an easy 3-step enrollment process:

  1. A risk-free, no-cost preliminary assessment
  2. Certification of qualified projects
  3. Delivery of your comprehensive study

We are actively working with business owners in every industry to help them claim this lucrative tax break before each quarterly deadline. Our close ties with industry experts and IRS commissioners allow us to streamline the application processes for our clients.

Give us a call at (844) 524-0077 or fill out our contact form below to get started.