Employee Retention Credit Online Application

The Employee Retention Credit (ERC) is a refundable tax credit for eligible employers that retain their employees during the COVID-19 pandemic. The credit is available to employers of all sizes that maintain their payroll during the COVID-19 pandemic, including those who are self-employed. If your business has been impacted by COVID-19, you may be eligible for the employee retention credit. To learn more and to apply, visit the IRS website.

Apply here, free of charge, for your ERC Credit with the IRS.

Employee Retention Credit in the USA.

The Employee Retention Credit (ERC) is a refundable tax credit for eligible employers that retain their employees during the COVID-19 pandemic. The credit is available for eligible employers who pay qualified wages to their employees after March 12, 2020, and before January 1, 2021.
To be eligible, employers must have experienced a full or partial suspension of operations due to a government order related to COVID-19, or have experienced a significant decline in gross receipts. For more information, see the Employee Retention Credit page on IRS.gov.

The credit is available for each eligible employee who is paid qualified wages. The credit is 50% of the qualified wages paid to the employee, up to $10,000 of qualified wages paid to the employee in 2020.

Apply Here, free of charge, for your ERC Tax Credit.

The credit is refundable, meaning that employers will receive a refund for any credit that exceeds their tax liability. The credit can also be used to offset payroll taxes.

The Employee Retention Credit is available for both for-profit and non-profit organizations. However, certain organizations are not eligible for the credit, such as federal, state, and local governments and their instrumentalities.
To apply for the Employee Retention Credit, employers must complete and submit Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, to the IRS. More information about Form 941-X can be found on the IRS website.

To be eligible for the credit, an employer must have experienced a complete or partial suspension of operations due to a COVID-19-related shutdown order from a governmental entity, or have experienced a significant decline in gross receipts (defined below).

Eligible employers are allowed a credit against payroll taxes equal to 50% of the qualified wages paid to employees after March 12, 2020, and before January 1, 2021. Qualified wages are defined as those wages paid to an employee while the operations of the employer were either fully or partially suspended due to a COVID-19-related shutdown order, or during the period in which the employer experiences a significant decline in gross receipts. The maximum amount of qualified wages that can be taken into account for each employee is $10,000 per calendar year.

Employers can claim the credit on Form 941 (Employer’s Quarterly Federal Tax Return) beginning with the second quarter of 2020. For example, if an employer pays qualified wages of $100,000 in the second quarter of 2020, they would be eligible for a $5,000 tax credit ($50,000 x 50%).

The credit is refundable. The credit is also available to employers who pay qualified sick leave wages or family leave wages to their employees. For more information, see the IRS guidance on the employee retention credit.

The credit is not available for employers who receive a Paycheck Protection Program loan.

What is the Employee Retention Credit?

The Employee Retention Credit is a refundable tax credit for eligible employers that retain their employees during the COVID-19 pandemic. The credit is available to employers who are experiencing financial hardship due to the pandemic and are unable to fully operate their business. To be eligible, employers must have a reduction in gross receipts of at least 50% when compared to the same quarter in the prior year. The credit is equal to 50% of qualifying wages paid to employees, up to $10,000 per employee. The credit is available for wages paid from March 13, 2020 through December 31, 2020.

How to Qualify for the Employee Retention Credit

In order to qualify for the Employee Retention Credit, businesses must:

  • Have been affected by the COVID-19 pandemic, which can include experiencing a significant decline in gross receipts or being required to fully or partially suspend operations due to government orders.
  •  Not have previously received a credit for wages paid under the Families First Coronavirus Response Act.
  • Make eligible wage payments to employees after March 12, 2020, and before January 1, 2021. Eligible wages include those that are paid for time spent working, as well as certain health insurance costs incurred by the employer on behalf of the employee.

Businesses will be able to claim a credit of up to 50% of eligible wages paid to employees during this period, up to a maximum of $5,000 per employee. The credit is available for both full-time and part-time workers.

How to Apply for the Employee Retention Credit

When you apply for the Employee Retention Credit, you will need to fill out for your quarterly payroll tax return. You will also need to attach a statement to your return that explains why you are eligible for the credit.

To claim the credit, you must reduce your federal income tax withholding by the amount of the credit. You can do this by completing a new Form W-4 and submitting it to your employer.

If you are self-employed, you can claim the credit on your quarterly estimated tax payment. If you have already filed your quarterly return, you can file an amended return to claim the credit. Additional Resources. For more information on the Employee Retention Credit, you can visit the IRS website.

If you are an employer who has been impacted by COVID-19, you may be eligible for the Employee Retention Credit. This credit is designed to help businesses keep their employees on the payroll during these difficult times. To apply for the credit, simply fill out the free application form on our website. We will then review your eligibility and let you know if you qualify for the credit.

Start here your ERC Application for Free.

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