ERTC: What you need to know

Posted By: Rodney Haynes ERTC, Tax + Accounting, Federal Legislation,
Employee Retention Tax Credit

The employee retention tax credit (ERTC) for employers subject to closure due to coronavirus. The provision provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the crisis.  The credit is available to employers whose

  1. operations were fully or partially suspended, due to a coronavirus-related shut-down order, or

  2. gross receipts declined by more than 50% when compared to the same quarter in the prior year.

For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the coronavirus-related circumstances described above. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order. The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee.  The credit is provided for wages paid or incurred from March 12, 2020 and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.

GRA is pleased to announce our newest Corporate Partner, NetTax, who can assist in securing these tax credits for you. NetTax has offered to prepare a no-cost Phase 1 benefit analysis for any GRA member who is interested in confirming their eligibility qualification for CV-ERC. After the analysis has been completed, if eligible, you decide if you prefer a refund or to apply the credit to upcoming payroll tax deposits. NetTax will then finalize the CV-ERC Compliance Analysis for tax preparation. There is no fee if you do not qualify. To see if you qualify, please click here and fill out the confidential survey to get started on the eligibility process. We believe in transparency, feel free to review our service agreement (no retainer fees, no hourly rates, and if you do not qualify for any tax credits, there's no fee at all).