Grant-Based Program

Employee Retention Credit ~ for business owners of America
By Peter Livingston
Financial Writer, AMC Group

Your business is eligible for this grant if it has been in operation since February 15th, 2020

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Employee Retention Credit (ERC) is a grant program based on qualified wages and benefits paid to your employees. This program is a part of the American Rescue Act legislation of March 2021. From this, your business can get back 70% of wages for 2021 and 50% of wages for 2020.

The ERC gives eligible employers payroll tax credits for wages and health insurance paid to employers. Employers who qualified in 2021 can claim a credit of about 70% in qualified wages. 

Long story short, yes your business can still qualify for Employee Retention Credit (ERC) even if you already took out the Paycheck Protection Program (PPP).
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Under section 206(c) of the Taxpayer Certainty Tax Relief Act of 2020, an employer that is eligible for the employee retention credit (ERC) can claim the ERC. This can be done even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program (PPP). Although the ERC will only apply to the wages that were not used for PPP. The rule governing this is that there is a “no double-dipping” rule guiding the interplay of an employer's forgiven PPP loan and its eligibility for ERC. 

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Your business can qualify for the ERC if it falls under one of the following:

A partial or full shutdown was required because of government authority in the year 2020 or 2021. Included in this is your operations being limited by commerce, restrictions of group meetings, or inability to travel. 

Your gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-Covid amounts. Self-employed individuals are unable to apply to this specific program, it only applies if you're a part of a business. 

So in short, yes you can still qualify for the ERC if you fall into either one of those categories. Your business can also be eligible for one quarter and not for another. If you are unsure as to whether you can apply: find out more about eligibility here. (link) 

Again your business can apply if it remained open during the pandemic. If your business was open during the pandemic then ultimately you had to change business operations due to the government's orders at that time. This means that you can qualify for the ERC program.

Good news if you are a small employer” the ERC can be claimed on all employee's wages. But if you are not a small employer, you can only claim ERC on the wages paid to the employees for not working.

The self-employed cannot claim their earnings as they are not considered wages.

Take a minute & see if you qualify

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