Back at the start of the pandemic when legislation introduced the Paycheck Protection Program (PPP) loan and the Employee Retention Credit (ERC), there were a lot of moving parts, and businesses were figuring out how to maneuver through the impacts of COVID-19.
Originally, businesses could not claim the ERC if they were also receiving the PPP loan because they were created for similar purposes yet had slightly different qualification standards. However, under recent regulations, businesses can now claim the ERC even if they previously received the PPP loan.
What is the Employee Retention Credit?
The ERC is a payroll tax refund created for COVID relief, which incentivized businesses that kept current employees on payroll during the pandemic. Compared to the PPP, which was a forgivable loan, the ERC returns business payroll taxes the business has already paid (not a loan). Once you receive the refund, there is nothing left for you to do.
Who Qualifies for the ERC?
It is a complex process to determine the proper amount a business is entitled to under the ERC that must be examined by a qualified CPA, but there are two ways to qualify for the credit based on any negative impacts of COVID-19. In 2020 and/or 2021, if your business experienced limitations in commerce, travel, or group meetings, or a significant decline in revenue, you likely qualify for the ERC.
In more detail, here is a list of business impacts due to COVID-19 that may qualify you for the credit:
- Partial or complete shutdowns of business
- Limitation of group meetings
- Supply chain interruptions
- Inability to retain or find employees
- Increase in cost of wages or goods
- Reduction in goods or services
- Interruptions to operations
- Inability to travel or attend conventions
- Cutting back on hours of operation
With that, you can still qualify even if your business increased profits during COVID-19 or you were able to stay open.
How Do You Get a Refund Estimate?
If your business was impacted by any of the situations listed, you may qualify for up to $26,000 per eligible employee on your payroll during COVID-19. At Republic Bank, we have partnered with expert CPAs and tax attorneys at Innovation Refunds to determine exactly how much your business is eligible for and unlock more government incentives and cash refunds. Time is of the essence because just as the PPP loans ran out without notice, government-funded programs are always subject to change. Here’s how you can easily get started on your refund today:
- Determine your qualification by filling out a 12-minute application
- Upload supporting documents to our partner’s secure portal
- Get your documents reviewed by their specialized CPAs
- Check your projected refund amount for free
- Open a Republic Bank Business Checking account
At Republic Bank, we want to ensure you receive the proper tax refund your business is owed. To learn more, give us a call at 800-526-9127 or head to our payroll tax rebates page to get started on your ERC refund.
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