Employee Retention Credits

Bottom Line is assisting our clients with various forms of government aid, in particular the Employee Retention Credit Program (ERC), which was part of the March 2021 legislation of the American Rescue Plan Act that revised the original ERC Program included in the CARES Actof May 2020, where an employer had to choose between Paycheck Protection Program (PPP) and ERC. The 2021 legislation expanded, extended and enlarged the ERC program and also allows eligible employers to benefit from both or either of PPP and ERC. Many people do not realize that they can now use PPP and ERC!

ERC has been very lucrative to many small and mid-sized businesses across the country:

  • We have secured refunds for our clients ranging from $100k to $10M
  • Up to $26k per employee on payroll (depending on actual paid wages and healthcare)
  • Breaks down to $7k per employee per quarter in 2021 from 1/1/2021 and can continue to 9/30/2021 for a total of $21k
  • Recovery Startup Business are eligible to continue in the program to 12/31/2021
  • Retro back for 2020 at $5k per employee
  • The IRS will issue refunds for the past quarters back to 2020 Q2 including to the beginning of 2021

If you are not receiving ERC, we would welcome the opportunity to discuss your eligibility requirements and how to start the program. We will manage it from end to end for you. We can get you up and running with funds in your bank account fairly quickly.

We can help you through the myriad of complexities that may pertain to your company’sunique situation such as
the following:

  • Program benefits to both small and large employers
  • Eligibility requirements by Revenues or Governmental orders for past and future quarters
  • Aggregation affiliation rules
  • International nuances
  • Treatment of furloughed employees and employees paid while not working
  • Eligible costs besides wages such as employer paid healthcare & pension contributions
  • Full or partial eligibility of Program benefits for the duration or part of the Program’s 21 months
  • What constitutes a Recovery Startup Business and its benefits under the Program
  • Rules governing Part Time employees
  • Nuances of Union and Non-Union situations
  • Multi-state companies sort through multiple Governor’s Executive Orders impact on eligibility
  • Analyzing the mathematical sweet spot to maximize both PPP forgiveness and ERC credits
  • Demystifying FAQs from the IRS
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