How To Qualify For The Employee Retention Tax Credit

There are 2 ways to Qualify for the ERC.

1) Gross receipt test... Did your business lose 50% in 2020 in comparison to 2019 and/or 20% in 2021 in any quarter?

2)

• Did your employees have to socially distance at work?

• Did your customers have to socially distance in your business (e.g. tables separated 6 ft at restaurant)

• Were your business hours limited in some fashion?

• Cleaning periodically

• Opening/Closing time

• Limited hours to sell alcohol after a certain time

• Restricted from working in the facility?

• Were operations temporarily shut down?

• Were employees restricted from going to work?

• Were employees subject to a curfew that affected hours worked?

• Was your business to shut down for periodic cleaning and disinfecting?

• Did your venders create a supply chain disruption?(even if the employer was an essential business exempt from government orders)

• Did your service providers have disruption that created a supply chain disruption?

• Was there any limitation placed on working hours? (even if the employer was an essential business)

• Were there any government orders that affected the business in a way that it could not operate in a comparable manner?

• Was there any unbundled part of the business in a way that the business part could not operate in a comparable manner?

• Was there restricted access to the physical workplace?

• Was there reduced working hours because of pandemic-related operating limitations?

• Were any imposed limitations on the use of physical space, affecting services?

• Were any imposed limitations on size of gatherings, affecting the business operations?

• (e.g. number of customers physically in the business)

• Were your employees denied access to the use of physical workspace space or physical assets?

Were your employees required to work remotely causing some limitations in ability to perform comparable duties?

If any of these apply to you, Schedule a call.

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