What Is, And How Do You Qualify For, The ERC?

Join Angie Aki from Ohana Investment Partners as we discuss ERC. ERC stands for Employee Retention Credit. The Employee Retention Credit (ERC) is a refundable tax credit designed for business owners. The ERC is intended to reward businesses for keeping employees through the COVID-19 epidemic. Unfortunately, many business owners aren’t receiving the correct information about how to qualify. The Employee Retention Credit is still the best incentive available. It’s is critical to understand the most common misunderstandings surrounding this credit, what the ERC credit is, and how to qualify. So let’s learn how you may qualify for ERC.

 

How Do I Qualify For The ERC?

There are a few ways to qualify for the ERC. The first is if your business was affected by a full or even partial suspension of your business, otherwise known as a shutdown.  If that’s the case, you automatically qualify for the ERC program. This includes any actual closures and restrictions on your business hours or capacity.  This caveat may also extend to suppliers of your business. If the facts state that the business’s operations were/are fully or partially suspended as a result of the inability to obtain critical goods or materials from its suppliers because they were required to suspend operations, then the business may be considered an eligible employer for calendar quarters during which its operations are fully or partially suspended and may be eligible to receive the employee retention credit.

‍The second way to qualify, is based on a significant reduction in gross receipts. In 2020 your business gross receipts have to be down by 50% compared to the same quarter of 2019 in order to qualify.  In 2021 this requirement is even easier to meet, because you only need a 20% reduction in gross receipts to meet the test.

Don’t Miss You’re Opportunity To Qualify For ERC

Don’t miss this opportunity to learn the ins and outs of the ERC program, and how to qualify for your Employee Retention Credit.

You deserve to take charge of your future. Stop limiting yourself because you don’t have the time, know-how or energy to take on something new. At Ohana Investment Partners in Orlando, Florida, we’ve done the heavy lifting through training, experience building and property vetting for you. We work with you to help you achieve your goals, in whatever season of life you’re in.