JP Mohler has been diligently tracking the ERC and assisting numerous entities evaluate their applicability. Your business could qualify for thousands.
The ERC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees.
For 2020, the credit can be claimed against 50 percent of qualified wages, up to $10,000 in wages per employee. For 2021, the credit can be claimed against 70 percent of qualified wages, up to $10,000 in wages per employee
For 2020, your business must have had a 50% revenue reduction for any quarter. For 2021 it must have a 20% revenue reduction for any quarter.
The ERC is extremely complex and has been updated multiple times by Congress. Furthermore, the Internal Revenue Service has provided limited guidance on the ERC. As such, in considering the applicability of the ERC to your organization, below is a short list of key considerations that must be taken into account in your evaluation and analysis: