Money On The Table—Qualifying for the Employee Retention Credit for Past Quarters

You may still be able to file for ERC via an amended Form 941X, Employer's Quarterly Federal Tax Return. This amended form allows your organization to take advantage of this relief program with a cash benefit of up to $26,000 per employee during 2020 and 2021. Whether you never understood it, were told you weren’t eligible, or just missed hearing about it altogether, we urgeyou to contact us now—free of charge—in determining if you qualify for thecredit. 

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Payroll companies and other financial professionals are frequently missing this issue and telling clients that they are ineligible for the credit.  We can provide a first or second opinion regarding your business’s eligibility for ERC at no cost.

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Note: The Paycheck Protection Program (PPP) funding no longer makes businesses ineligible for the ERC. 

What is the ERC?

ERC helps with employee retention and weathering the effects of the pandemic. In essence, it is:

• A refundable payroll tax credit
• Claimed via quarterly filing
• A reduction in payroll taxes or simply cash refunds
• Available to eligible for-profit and non-profit employers with less than 500 full-time employees

How Do You Qualify for the Credit?

First, if your business was affected by a mandated full or partial suspension of business then you may automatically qualify for the ERC.  These suspensions include actual closures, as well as restrictions on hours or capacity. It is important to note that this provision may also extend to suppliers of the business.  

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Note: If your business’s operations were ever fully or partially suspended because you couldn't obtain critical goods or materials from your suppliers because they had a suspensions of operations, then your business would be considered an eligible employer for the quarters that happened and you may be eligible for the credit.

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The second way to qualify, is based on a significant reduction in your business's gross receipts.  In 2020 your business gross receipts must be down 50% compared to the same quarter of 2019 in order to qualify.  In 2021 this requirement is even easier to meet, because you only need a 20% reduction in gross receipts to meet the test.

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Finally, Recovery Startup Businesses remain eligible for the ERC in the fourth quarter of2021. Briefly, a Recovery Startup Business is a business which was started after February 15, 2020 and has gross receipts under $1 million. If you own/operate a Recovery Startup Business—you may still be eligible for ERC through the fourth quarter of 2021!

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If you would like to learn more please reach out to Matt Eddleman ( or Ben Dorsey and visit ourwebsite at www.smartertaxplanning.com.  You can also schedule afree consultation by calling (202) 455-6010.