The ERC (also known as an Employee Retention Credit) is a federal tax credit to help employers impacted by COVID-19. It has since been updated and extended.
Eligible employers receive a credit of up to $5000 in 2020 and a credit of up to $7000 for each of the first three quarters of 2021. These credits are refundable.
Your business qualifies if a) you were in business in 2020/2021, b) you fully or partially suspended operations or c) you experienced a significant decline in receipts.
This article will help to define the ERTC program, who can apply, what's the maximum credit potential, how is this claimed and how this benefits restaurants.
This article is by the Journal of Accountancy and helps to explain some of the details that your CPA may need regarding the ERTC program
Your ERC awards will depend on the number of W-2 employees you have and which quarters your business was eligible. Click on the link below to get a sense for the range.
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