- Was your business operation fully or partially suspended?
- Did your business lose revenue?
- Did your business experience limited commerce, travel or group meetings?
Then you may be eligible to receive up to $5,000 for each employee through the Employee Retention Credit through the CARES Act.
What is the Employee Retention Credit?
- Provides economic relief to employers impacted by Coronavirus (COVID-19) in the form of tax credits claimed against the employer portion of Social Security taxes.
- Eligible employers receive a 50% credit (up to $5,000) for qualified wages up to $10,000 per employee.
- Any excess credit is refunded to the employer quarterly.
What Businesses are Eligible?
- Businesses that fully or partially suspended operations due to orders from a governmental authority (may include work from home).
- Businesses that experienced at least a 50% reduction in year over year gross receipts during the quarter.
- Tax exempt/not for profit organizations qualify for this credit as well.
What are qualified wages?
- Less than 100 full time equivalent (FTE) employees: Businesses can include all qualifying wages up to $10,000.
- More than 100 FTE* employees: Businesses can include up to $10,000 in wages paid for an employee not providing services.
- Employers can include wages paid between March 13, 2020 through December 31, 2020.
Compeat partner, Synergi Partners, is well versed in the special nuances of the ERC to maximize your credit potential. Synergi Partners has developed proprietary methodology called “Operational Impact Analysis” which evaluates the totality of business impact, including revenue loss, resulting in maximum credits delivered. Through Synergi’s partnership with Compeat, you can receive a complimentary evaluation of your tax credit potential.
To learn more, please visit the Synergi+Compeat page here.