Rules You Must Know For Employee Retention Credit

1. Rules You Must Know For Employee Retention Credit Employee retention credit is one of the most helpful tax reliefs. But since it has too many complex qualification conditions, it disqualifies so many small businesses. However, amendments were made in the ERC. The qualification criteria have become a little easier to clear, so the business that didn’t qualify back then can qualify now. So, if you are a small business employer seeking ERC and want to check ERC eligibility, you must know these rules. And see how they can benefit you. Important Rules For The Employee Retention Credit

2. ●After the changes, the ERC rate per employee has changed, increasing from 50% to 70%, and the per-employee wage limit is increased from $5000 to $10,000 per quarter for 2021. ●Eligibility based on the gross receipt has also changed. As a result, an employer can apply if the gross receipt has declined more than 20%. ●Also, the number of W2 employees has changed. Now a business that has less than 500 employees can also apply for the small business tax relief. ●Also, if your business did not exist in 2019, you can now compare the 2021 gross receipt with the gross receipt of 2020 to check your eligibility. This amendment was made to ERC to help the new startups. ●In case you have less than 100 employees, you can qualify for the wages paid to your working and non-working employees. ●When you have more than 100 and less than 500 employees in your business, you will receive the credit for wages only paid to your full-time working employees. ●Also, a new qualification criterion has been included in the ERC, which is supply chain disruption. Check ERC Eligibility- Know In Details Now, when you know, all the new rules made to the ERC. It’s time to sum up the eligibility criteria. As per the new rules, here are the three ways to qualify for the ERC- ●Supply Chain Disruption

3. The business that has faced supply chain disruption can apply to the ERC. For example, restaurant businesses mostly depend on meat and vegetable supplies to run their business operation. And due to government restrictions, it was not possible to keep running these types of operations. ●Full or Partial Shut Down In The Business Operations If you have to suspend your business operations fully or partially because of the government restrictions, you can qualify for the Employee Retention Credit. ●Plummet In Gross Receipt If your gross receipt has declined more than 20%, you can qualify for the ERC criteria. Note- Employers who have availed the benefits of a PPP loan can also qualify for the ERC. However, they can’t count the same wages they have counted for the PPP loan. Read Also How To Apply For The ERC Easily? You can apply for the Employee Retention Credit with ERC specialists. They can ease the process and complexities that come into the path of claiming credit. You can visit their website and submit your documents. After that, once they have examined your ERC eligibility and how much

4. credit you can receive, they will get in touch with you. And once you have approved the application, they will submit it to the IRS for further process. So, claim your credit now!