Even if you received PPP (Paycheck Protection Program) loans during the pandemic, there is an opportunity to receive a credit per employee you retained on staff. This credit, called Employee Retention Credit (ERC), does not require repayment.
The ERC aims to support businesses in recovering from the economic shutdown caused by COVID-19, making up for lost revenue, and retaining employees. To qualify for the ERC, businesses must meet four conditions: experiencing decreased revenue due to COVID-19, operating within the United States, facing a partial or full shutdown by authorities that affected operations, and qualifying as a Recovery Startup Business in the third or fourth quarter of 2021.In 2023, businesses typically claim the ERC by amending their tax filings. Processing ERC claims and issuing checks by the IRS usually takes 4-10 months on average. If you’re unsure about eligibility, seeking assistance from experts like Credit League can potentially help you save up to $26,000 per employee. Credit League is a US-based organization that includes a highly-trained team of attorneys and CPAs. It maintains contact with the IRS from processing until checks are mailed to mitigate any issues affecting your filing status.
