The CARES Act created the employee retention credit (ERC) to assist employers affected by the COVID-19 pandemic. The ERC was further expanded and modified under the Consolidated Appropriations Act in December 2020. With Congress completing the Infrastructure Investment and Jobs Act (Infrastructure Act) on Nov. 5, 2021, the expiration of the ERC was accelerated from Dec. 31, 2021 to Sept. 30, 2021 for most employers. Opportunities continue to exist for businesses to retroactively claim the ERC for prior calendar quarters.
Take advantage of the employee retention credit
Our tax credit experts can ensure you’re taking full advantage of the ERC. We’ll help you:
- Determine potential aggregated group membership.
- Review qualification under suspension of operations.
- Analyze gross receipts to determine if there was a significant decline.
- Advise on full-time employee determination.
- Account for acquisitions or dispositions.
- Devise a Paycheck Protection Program (PPP)/ERC-eligible expense optimization strategy.
- Quantify qualified wages and health plan expenses.
- Compute credit and advise on filing logistics.
When it comes to calculation and support. We can help you:
- Identify full or partial suspension of operations.
- Compute and support significant decline in gross receipts on a tax basis.
- Apply wage and health plan expense limitations.
- Assess overlap between PPP funding and eligible wages.
- Review records and uncover nonproductive employees.
- Compile, review, and compute retention credit.
- Deliver supporting calculation and documentation package.
Employee retention credit insights
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Employee retention credit refunds subject to lengthy processing time
The IRS is struggling to process hundreds of thousands of employee retention credit refunds. Claims may require months of processing time, and there’s little that taxpayers can do to check on the status or timeline. Here are the details.
Long-term care facilities may qualify for employee retention credit
Many senior living and long-term care organizations may have overlooked eligibility for the employee retention credit. A closer look at a government-mandated partial suspension of operations, as well as the definition of “small employer,” could result in savings. Here’s how.
Employee retention credit receives clarification from new IRS guidance
The IRS has weighed in on issues concerning the employee retention credit, such as the inclusion of COVID-19 relief funds in gross receipts and the treatment of tips in the calculation of qualified wages, providing answers to some open questions.
Infrastructure Act accelerates expiration of employee retention credit
The employee retention credit (ERC) helped businesses meet pandemic payrolls, but its initial conflict with other programs and multiple modifications confused potential beneficiaries. Though it’s expiring as of September 2021, some employers should consider a retroactive claim.
Senate passes infrastructure bill and initiates process for major tax changes
The infrastructure spending bill and budget reconciliation instructions set the stage for broader social infrastructure programs and further tax changes. Our National Tax Office experts discuss these potential changes and what they could mean for you.
Employee retention credit FAQs clarify employer eligibility
Many employers have questions about how the employee retention credit applies to their businesses, particularly after new legislation expanded the credit. We’ve compiled some frequently asked questions we received during our recent webinar, along with our answers.
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