The federal government established the Employee Retention Credit (ERC) during the COVID-19 pandemic to help businesses with the cost of keeping their staff employed. During 2020 and 2021, the credit could be partially taken against current payrolls to reduce the amount of tax due to the IRS each pay period and the remaining amount was issued as a refund.
In 2022, you can still take advantage of these credits! If you are eligible to claim the ERC, you can amend prior payroll tax returns and claim the entire credit amount as a lump-sum refund.
Eligible businesses are those who either experienced a significant decline* in revenue or had their business operations fully or partially suspended** due to a government mandate.
If this sounds like something you experienced in 2020 and 2021, you may be eligible to receive some payroll tax credit refunds.
The most exciting news is that having a Paycheck Protection Program (PPP) or PPP2 loan forgiven does not disqualify you from the ERC program! These funds can reduce the burden your business may still be experiencing, can help you recover your business, or if you have already recovered they can just be a cherry on top. Why not see if you are eligible to claim anything?
To get started all you need to do is email erc@dominionpayroll.com and provide your:
– Company name
– FEIN
– Contact name
– Contact phone number
The first step we will take is evaluating if your business qualifies for the ERC program.
If you are eligible to claim the credit, we will proceed to retrieve the necessary information to calculate the absolute maximum amount you are eligible to claim without interfering with PPP loan forgiveness.
Once we have that information, your only job is to sit back and wait for the funds to roll in! If you
*The IRS defines a significant decline in revenue as 50% in 2020 and 20% in 2021.
**A suspension in business operations ranges from (but is not limited to) a section of your business is closed, limited gatherings, or reduced hours.
About the Author
Johanna Garg is a licensed CPA in Virginia, and currently working on becoming an enrolled agent with the Internal Revenue Service (IRS). Her past experience includes working as a retirement planner, financial advisor, and tax auditor for Virginia. Garg studied at William & Mary College with a dual degree and an Accounting degree from Virginia Commonwealth University.