March 29, 2022   //   COVID-19   //   By PKF Mueller Solutions

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Have you taken advantage of the Employee Retention Credit (ERC)?

The ERC was offered by the U.S. Government to encourage businesses to keep employees on their payroll during the COVID-19 pandemic.

Originally, if an employer previously participated in the Paycheck Protection Program (PPP) they were excluded from the ERC benefits. As of March 2021, the IRS eased the various qualifications; thus, now more employers are eligible for the ERC, regardless of their PPP status. Most importantly, this is not a loan – no repayment is required.

PKF Mueller can assist your company to get its’ fair share of ERC stimulus funds. Our professionals have helped clients receive millions of dollars in ERC cash refunds. We can assist in determining your company’s eligibility, detailed calculations, and advise on filing logistics.

Outlined below are some of the benefits and qualifications.

Maximum benefits are as follows:

  • Maximum cash credit of $5,000 per qualified headcount for the 2020 year; and
  • Maximum cash credit of $21,000 per qualified headcount for the 2021 year

Qualification steps for existing entities:

  • Experience a government-mandated shutdown (any level of government is allowed), or
  • Experience a significant decline in Gross Receipts in any quarter of 2021 or 2020 when compared to 2019
    • Quarterly declines of at least 50% in 2020 vs. 2019
    • Quarterly declines of at least 20% in 2021 vs. 2019

Qualification steps for new entities or Recovery Startup Business (RSB):

  • Average gross receipts < $1 M
  • Recently formed entity that begins its intended trade/purpose after 2/15/2020
  • Benefit limited to $50,000 in each quarter but only for Q3 & Q4 of 2021

If you would like to learn more, please contact your PKF Mueller Professional or one of our ERC Specialists at ERCTeam@pkfmueller.com.

Kurt Schlup, CPA, MST

Manager, Consulting Services

ERC Specialist

+1 847 773 0761

kschlup@pkfmueller.com