The Complete Guide: Employee Retention Credit 2022 & ERC Government Fund After Covid & How It Can Help You Save Your Business & Keep Your Employees

Introduction: What is Covid Employee Retention Credit 2022?

Employee Retention Credit 2022 is a new initiative by the government to provide tax incentives to companies that increase their employee retention rates. Under this program, companies will be eligible for tax incentives if they meet certain criteria.

The company must have 5 w2 employees and must have an average retention rate of 90% or higher. If they do, then they will be eligible for tax incentives that are worth up to $2,000 per employee per year.

The government is hoping that this initiative will help create more jobs, reduce turnover rates and make the labor market more efficient in general.

The United States had a similar program called the Lifetime Learning Credit. This tax credit was set to expire in 2017, but was extended until 2019. It is possible that this new initiative will be added to that program and run concurrently with it.

 

When the COVID-19 epidemic became widespread, normal activities in both our personal and professional lives came to a grinding stop. As a direct reaction, the federal government of the United States established the Employee Retention Tax Credit (ERTC), which is also known as the Employee Retention Credit (ERC), with the intention of assisting businesses in retaining their personnel and weathering the current economic storm.

The Economic Recovery and Transition Act (ERTC) is a component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was an economic stimulus program with a total value of $2.2 trillion that was signed into law in March of 2020.

Since it was originally implemented, the ERTC has had its funding through the first two quarters of the next year increased as part of the Consolidated Appropriations Act for the year 2021.

It was extended for a third time in August of 2021 by the American Rescue Plan of 2021. (ARP). Despite the fact that this tax credit will no longer be available after the autumn of 2021, organizations who qualify for it may still submit claims until the end of 2022.

What Exactly Is The Employee Retention Tax Credit 2022?

The Employee Retention Tax Credit 2022 is a refundable payroll tax credit that was designed to encourage employers whose businesses were disrupted by COVID-19 restrictions to retain employees and keep them on the payroll and collecting paychecks through the downturn in business.

The credit is intended to encourage employers to retain employees whose companies were disrupted by COVID-19 restrictions.

This credit is calculated as a percentage of qualifying salaries provided to workers by eligible companies, and it may also include a portion of the expenditures associated with health insurance.

The percentages, which have been subject to change ever since the ERTC was first established, are as follows:

Between March 12, 2020 and before January 1, 2021, companies were allowed to claim a refundable tax credit equal to fifty percent of the qualifying wages provided to eligible employees, up to ten thousand dollars yearly per employee.

The Consolidated Appropriations Act of 2021 modified the credit in a way that allowed it to be used to salaries earned after January 1, 2021 and before June 30, 2021. This extension came with a number of new requirements.

This Act enabled qualified employers to claim a credit against 70 percent of qualified wages paid, with a credit of $10,000 per employee per quarter (for the first two quarters), as opposed to the previous amount of $10,000 per eligible employee annually.

In addition, qualified employers were able to claim a credit of up to $10,000 per employee per quarter (for the first two quarters) in lieu of up to $10,000 in wages per employee paid annually.

Employers will be able to claim a refundable tax credit of up to 70 percent of the qualified wages paid to employees for the third and fourth quarters of 2021 (wages paid after June 30, 2021 and before January 1, 2022). This credit has a maximum value of $7,000 per employee per quarter. This credit applies to wages paid after June 30, 2021 and before January 1, 2022.

The Act will no longer be in effect as of the 30th of September, 2021; however, claims may still be submitted by qualifying enterprises until the 30th of September, 2022.

What Is The Cares Act Employee Retention Credit 2022?

ERC was included in the legislation of the American Rescue Plan Act that was passed in March 2021. This legislation revised the original ERC Program that was included in the CARES Act of May 2020, where an employer had to choose between the ERC and the Paycheck Protection Program (PPP).

The IRS provides various forms of government aid. The law that was passed in 2021 enhanced, expanded, and enlarged the ERC program.

Additionally, it enables companies who are qualified to profit from either the PPP or the ERC program.

Many people including accountants do not even realize that they can now use PPP and ERC.

Who Is Eligible For The ERC Covid Relief?

You may still be eligible for ERC payments even if your company did not see a decrease in income and was not regarded as important.

Some Examples Include:

A disruption in your business (division or department closures)

• Inability to visit a client’s job site; Suppliers were unable to make deliveries of critical goods or materials; Additional spacing requirements for employees and customers due to social distancing.

• Changes in business hours.

• Partial or full suspension of your operations.

• Shutdowns of your supply chain or vendors.

• Reduction in services offered.

• Reduction in workforce or employee workloads.

• Reduction in services offered.

The most important questions to ask yourself are as follows:

As a result of the government’s order to partially or completely suspend certain activities, was your company unable to continue those activities in a comparable manner, and did this result in an impact that was more than nominal on your business operations?

If you replied “yes” to any of the questions above, please get in touch with us so that we can discuss how we can assist you in maximizing your refund.

What are the Benefits of Employee Retention Credit 2022?

To attract and retain talent, companies are focusing on offering competitive benefits packages. These benefits include health and wellness programs, life insurance plans, retirement savings plans, and more.

The employee retention credit is a new tax deduction that will be available to eligible employers in 2022.

The purpose of this deduction is to encourage businesses to invest in their workforce by providing them with a tax break for doing so.

The employee retention deduction is a new tax deduction that will be available to eligible employers in 2022.

The purpose of this deduction is to encourage businesses to invest in their workforce by providing them with a tax break for doing so. This credit will be available over the course of the calendar year, beginning on January 1 and ending December 31, meaning you can deduct your contributions in any twelve-month period beginning January 1 and ending December 31.

The individual employee retention deduction is an amount equal to 10% of the eligible amount paid by the employer during the year for health care coverage for eligible employees, up to a maximum of $6,550 per employee.

The new credit will be available over the course of 12 months beginning on January 1 and ending on December 31, meaning that you can deduct your contributions in any 12-month period beginning January 1 and ending December 31.

The individual employee retention deduction is an amount equal to 10% of the eligible amount paid by the employer during the year for health care coverage for eligible employees, up to a maximum of $10,000 per employee.

This credit will be available over the course of 12 months beginning on January 1, 2019 and ending December 31, 2019. The individual employee retention deduction is an amount equal to 10% of the eligible amount paid by the employer during the year for health care coverage for eligible employees, up to a maximum of $10,000 per employee.

This credit will be available over the course of 12 months beginning on January 1, 2020 and ending December 31, 2020. The individual employee retention deduction is an amount equal to 10% of the eligible amount paid by the employer during the year for health care coverage for eligible employees, up to a maximum of $10,000 per employee.

The credit is not available to employers that do not offer health care coverage. The employer retention deduction equals 10% of the eligible amount paid by the employer during the year for health care coverage for eligible employees.

Employers with at least 100 full-time equivalent employees (FTEs) are eligible to claim this credit. If the amount of employer retention deduction exceeds the credit, the excess can be carried over to future years.

For purposes of this credit, an eligible employee is a workforce unit member with respect to whom there is no qualified health plan coverage for all members during any month, who has not elected COBRA benefits, and who has been employed by an eligible employer for at least 20 hours during the preceding calendar month.

 

What Are The Drawbacks Of Employee Retention Credit 2022?

Employee retention credit is a specific type of tax credit that companies can claim when they maintain a certain level of employee retention. This is an incentive for employers to keep their employees and not make them feel like they have no other choice but to leave.

However, there are drawbacks to this tax credit that employers should be aware of before they apply for it. One drawback is that this tax credit only applies when the employee has been with the company for at least one year. If the employee leaves before that then there is no way for the company to claim this benefit.

Another drawback is that if an employer hires someone who has received this incentive in the past then they will be ineligible to receive it again, even if it was with another organization. This means that if someone left one company and be hired by another company that received the tax credit they would not be able to take advantage of it again.

Estimates of potential annual credits range from $0 to up to $2,200 per employee. This can vary by state and industry so it is important for employers to check with their state’s department of labor agency before applying for the incentives.

The United States federal government offers a tax credit for employers that hire certain employees with disabilities, but it is not refundable and there is a limit of 200 hours of work in the first year.

The credit starts to be phased out when an employee earns more than $25,000 per year based on the number of hours they work each year.

Thus, the employer who hires a worker with disabilities will generally not receive a full-time employee discount from the Fair Labor Standards Act (FLSA) and will be required to pay all employees at least minimum wage.

The employer is also prohibited from hiring more than 10% of its workforce as workers who are currently receiving public assistance or are members of certain targeted groups.

 

4 Common Mistakes Most People Make In Regards To ERC

Over the course of the previous two years, the ERC has undergone a number of revisions, some of which went into effect in 2020, while others are not going to take effect until 2021.

Confusion has increased significantly as a direct result of these developments. The discussion of this tax credit with the company’s tax counsel should be regarded as the most significant action a company may take.

Here are 4 of the most common mistakes people make about ERC.

Big Mistake Number 1:

Because my company has already taken out a loan under the Paycheck Protection Program, I am not eligible.
At first, an employer could not be eligible for both the Earned Revenue Credit and the Paycheck Protection Program at the same time (PPP).

This rule was changed by the Relief Act in December 2020, and the change was made retroactive all the way back to March 27, 2020. As a result of this rule change, eligible employers are now able to claim the ERC on any qualified wages that are not counted as payroll costs in order to obtain PPP loan forgiveness.

Any salaries that may count toward qualifying for the ERC or PPP debt forgiveness programs can only be applied to one of these two programs at a time; they cannot be applied to both programs at the same time.

Big Mistake Number 2:

It is too late for my company to submit a claim for the credit

In the event that your company was able to recover from a “significant drop in gross revenues,” and you had not previously applied for the credit, you may still submit an application for a retroactive ERTC refund.

Even though the employee retention tax credits will no longer be available after October 1, 2021, you may still be qualified to take advantage of them if your company meets the requirements. In order to assess whether or not they are eligible for the program, businesses have three years after it comes to an end to look back on salaries earned after March 12, 2020.

Big Mistake Number 3:

Because I didn’t launch my company until 2019, I don’t qualify.

For companies that began operations in 2019, the quarter in which the company began operations will serve as the foundation for calculating the quarterly drop, and this will continue until the company has been in existence for one full year. For instance, a new company that began operations in the second quarter of 2019 would use the results of that quarter as the basis for calculating the loss in revenue for either the first or the second quarter of 2020.

If a company begins operations in the middle of a certain quarter in 2019, it is possible to utilize an estimate of the gross revenues for that time.

Big Mistake Number 4:

I do not believe that the percentage of drop in my 2021 quarterly sales is sufficient to qualify.

The Internal Revenue Service has issued some new rules in response to guidance that they have offered, which may make it simpler for businesses to satisfy the requirements necessary to qualify for the employee retention credit.

The Internal Revenue Service’s Notice 2021-23, titled “Information on the Employee Retention Credit under the CARES Act for the First and Second Calendar Quarters of 2021,” provides guidance on an alternate quarter election.

This notice was issued in 2021. Because of this option, companies may turn to the quarter before this one to evaluate whether or not they saw a revenue loss of more than 20 percent. For instance, if the company’s revenue in the first quarter of 2021 fell less than twenty percent when compared to the revenue in the first quarter of 2019, the company could look to the previous quarter, which would be the fourth quarter of 2020, and compare those revenues to the revenues in the fourth quarter of 2019.

In addition, under Revenue Procedure 2021-33 of the IRS, a safe harbor was made available, which allowed employers to omit certain payments from gross revenues for the express purpose of assessing whether or not they were eligible for the ERC.

These amounts are:

The amount of the forgiveness of a PPP Loan
Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Venues Act, and Non-Profits
Restaurant Revitalization Grants under the American Rescue Plan Act of 2021

How To Apply For The ERC Yourself  & Paid And Free Tool for Calculating the Eligibility of ERC (Do It Yourself Method Aka Very Confusing)

You can use a tool that will assist you in calculating the possible employee retention credit that your company is  entitled to.

There are several different tools available that may assist you in calculating the possible employee retention tax credits.

https://internetmoneykings.com/employee-retention-credit-worksheet

Thomson Reuters has revised the Employee Retention Credit Tool in order to assist all companies in determining whether or not they are qualified for the employee retention credit. This was done due to the complexity of the eligibility requirements for the credit.

I don’t recommend the DIY method because it is an overwhelming and confusing process.

You can also ask your accountant for help, but in my experience accountants are not even up to date with this type of information at least my accountant was not even aware of the fact that getting an ERC from the government was even an option.

This is why in this case I recommend to go for professional help. This is all very specialized expert knowledge that only a real ERC advisor will be able to help you with.

I mean you go see a specialist for special knowledge not a generalist and don’t even think about trying to fix it yourself because disaster is going to hit the fan.

The most effective course of action in my humble opinion is to collaborate with a firm that provides employee retention credit in order to make certain that all guidelines and laws pertaining to total credit are effectively followed.

Luckily for you I found a service that does just that and best of all it is F-R-E-E of cost.

You just can’t beat that solution no matter how good your lawyer or your tools are. This not only saves you a ton of money it also saves you from going insane.

How To Get Professional Help With Your ERC Application

There are a services that helps companies save money on employee retention credits by streamlining the process of onboarding new customers and reporting claims in as short as one to two weeks. Additionally they protect sensitive information with its private and password-protected Client Portals. An initial estimate of the ERC may be obtained at no expense and with just a little amount of effort put up front. They let you exactly know about your ERC refund status.

Introducing The Most Effective Employee Retention Credit Service (Done For You + Completely Free Method)

Bottom Line Concepts is such a service. They helps companies just like yours to save money on employee retention credits and save you loads of valuable time.

The staff at Bottom Line Concepts is able to provide paperwork that is ready to be filed with the IRS without contacting your payroll provider in the process.

This service simplifies the process of filing for your employee retention tax credit.

They evaluate your company to determine whether or not it is eligible for the ERC Program, the amount of funding that it is appropriate for you to receive, and any further technical issues that may come up throughout the course of this otherwise complicated procedure.

You won’t have to stress about navigating it on your own when you have the assistance of the professionals at Bottom Line Concepts at your side. They will direct you and lay out the processes that you need to do in order to maximize the claim for your company, as well as answer any concerns about the ERC that you may have.

Bottom Line Concepts is the place to go for more information.

The following are some of the reasons why using this service makes it simpler to apply for the employee retention tax credit:

They are able to guide you through the process from start to finish by providing effortless data gathering (including a portal for you to upload your 941 returns, PPP loan documents, and raw payroll data), credit calculation to determine the exact value of the credit you are eligible to receive from the IRS, and assistance amending returns.

Bottom Line Concepts knowledgeable services, free consultations, 100 percent IRS compliances, and extraordinarily high success rates have been of assistance to businesses of varying sizes.

As a result, they are familiar with how to negotiate the complexity and adhere to the norms and regulations. Their staff of COVID relief program professionals maintains current on the most recent news and information coming from the SBA, the Treasury, Congress, and the IRS on a continual basis.

Bottom Line Concepts is the place to go for more information.

The specialists at Bottom Line Concepts are also well acknowledged as thought leaders in the field of COVID relief policy. The staff at Bottom Line Concepts uses innovative thinking to maximize your advantages while adhering to the constraints and limitations imposed by the IRS.

The team includes devoted ERC advisers that are in the front of educating the general public and guiding customers toward optimum COVID alleviation advantages.

Get in touch with a Free ERC Advisor today!

A great number of companies have jumped to the conclusion that they are not qualified for the ERC because they are confused and even their accountants have no clue.

It is critical for a company to consult with a professional ERC expert on the further measures to take.

The process of claiming the credit may be difficult, but the ERC professionals at Bottom Line Concept have assisted a great number of companies in determining whether or not they are qualified for it and in taking advantage of the opportunity when it presented itself.

Get in touch with a Bottom Line ERC Advisor today if you need any further information.

If you have 5 W2 employees you are eligible and a friendly Bottom Line ERC Advisor is going to walk you through the whole process and do the application for you. All you have to do is answer a few simple question.

Best of all the whole process is absolutely free of charge for you so you have nothing to lose, but everything to gain.

What Is Bottom Line Concepts

Bottom Line Concepts is assisting clients with various forms of government aid, one of which is the Employee Retention Credit Program (ERC), which was included in the legislation of the American Rescue Plan Act that was passed in March 2021.

This legislation revised the original ERC Program that was included in the CARES Act of May 2020, where an employer had to choose between the ERC and the Paycheck Protection Program (PPP).

Bottom Line is assisting clients with these various forms of government aid. The law that was passed in 2021 enhanced, expanded, and enlarged the ERC program.

Additionally, it enables companies who are qualified to profit from either the PPP or the ERC program. Many people do not realize that they can now use PPP and ERC.

If you are not receiving ERC, Bottom Line Concept would welcome the opportunity to discuss your eligibility requirements and how to start the ERC program application for your company.

They will manage everything from start to finish in a done for you type of scenario for you.

It does not cost you or your company a penny and you only have to answer a couple of questions.

They  can get you up and running with funds in your bank fairly quickly.

They will guide you through the plethora of complexity that may be relevant to the one-of-a-kind position that your firm is in, such as the following:

• Program benefits to both small and large employers

• Eligibility requirements by Revenues or Governmental orders for past and future quarters

• Aggregation affiliation rules

• International nuances

• Treatment of furloughed employees and employees paid while not working

• Eligible costs besides wages such as employer paid healthcare & pension contributions

• Full or partial eligibility of Program benefits for the duration or part of the Program’s 21 months

• What constitutes a Recovery Startup Business and its benefits under the Program

• Rules governing Part Time employees

• Nuances of Union and Non-Union situations

• Multi-state companies sort through multiple Governor’s Executive Orders impact on eligibility

• Analyzing the mathematical sweet spot to maximize both PPP forgiveness and ERC credits

• Demystifying FAQs from the IRS

Bottom Line Concept Results

A Bottom Line Concept advisor will walk you through the process, give you a refund estimate and process the refund with the IRS. They are a one-stop-shop from start to finish. This 3rd party has done this process for over 7,000 customers and recovered over 2 billion in refunds.  They have been in business since 2009 and work with many of the Fortune 500.

They have been very lucrative to many small and mid-sized businesses across the country and here are some of the results that Bottom Line Concepts has achieved for some businesses that have asked for their help:

• Bottom Line Concepts has been successful in securing refunds for our customers ranging from $100,000 to $10,000,000

• Up to $26,000 may be refunded to each person who is on the payroll (this amount is contingent on the actual wages paid and the cost of healthcare)

• Recovery Startup Businesses are allowed to remain in the program until 12/31/2021

• Retro back for 2020 at $5,000 per employee

• The Internal Revenue Service will pay refunds for the previous quarters dating back to 2020 Q2 inclusive to the beginning of 2021

Check if You Qualify for the Employee Retention Credit Today?

Just answer a couple of simple questions here:
http://harperstribune.com/ercfund

Please only respond if you have 5 W2 employees, if your business operates in the USA, and if you have not already received Employee Retention Credit. 

If all 3 items apply to your business you are able to get a reimbursement offered by the government.

Employee Retention Credit Deadline 2022

So when is the employee retention credit 2022 deadline you might ask. The Act will no longer be in effect as of the 30th of September, 2021; however the good news is that claims may still be submitted by qualifying enterprises until the 30th of September, 2022.

So make sure to get your Free ERC refund ASAP just by clicking here!

Conclusion: The Future Of Employee Retention Tax Credits

The future of employee retention tax credits is a topic that has been debated for quite some time. There are many arguments for and against the idea, but there are also many benefits to the idea as well.

It could be used as a tool to attract and retain employees, or it can be used as an incentive for employees to stay with their company longer.

In conclusion, I believe that the future of employee retention tax credits is still in question. We have yet to see if it will work in favor or against companies who use it, but one thing is for sure and that is the following. You can still profit from the ERC today and you should do so before the deadline ends.

If you are not receiving ERC, I would recommend that you take the opportunity to discuss your eligibility requirements and how to start the program as soon as possible with a professional ERC advisor who will manage everything for you and you don’t have to do anything.

He or she can get you up and running with funds in your bank account fairly quickly and the best thing of all is that it does not cost you anything. It can’t get better than FREE!

The process is made simple by Bottom Line and my own online business will be getting back about $11,000 per W2 employee.

I myself started hiring before Covid because business took off and I needed more help with every aspect of it.

I couldn’t believe my own eyes when Jason a friend of mine was checking to see if my company has applied for the Employee Retention Credit. He opened my eyes to this concept. Sure enough I got help from Bottom Line Concepts as well and they handled everything for free for my company.

This is is why I am recommending them as the only solution for you because Bottom Line is able to get the ERC refund for you in the form of a grant and yes it can return up to $26,000/employee ($11,000 is the average) depending on wages, health care and other personnel expenses business owners have already paid.

It is my belief that your business would be able to receive this ERC refund, too. If you are interested in learning more, please click here and Bottom Line Concepts will get the process started for you and help you with this once in a lifetime opportunity.

Frequently Asked Questions About Employee Retention Credit

What Is Recovery Startup Business Employee Retention Credit IRS?

A refundable tax credit against some employment taxes is known as the Employee Retention Credit. This credit is equivalent to fifty percent of the qualifying salaries that an eligible firm pays to workers after March 12, 2020 and before January 1, 2021. Employers who qualify for the credit may have immediate access to it by decreasing the amount of employment tax deposits they would have been forced to pay otherwise. Additionally, in the event that the employer’s employment tax deposits are insufficient to satisfy the credit, the Internal Revenue Service (IRS) may provide the employer with an advance payment.

Is The Employee Retention Credit Taxable Income?

According to Internal Revenue Code Section 280C, employer tax credits result in a decrease in wages equal to the amount of the credit, despite the fact that the ERC is not considered taxable income. This decrease takes place in the year that the wages were paid; hence, a credit for the year 2021 must be shown on the tax return for that year, even though the refund has not yet been received.

 

What Are Employee Retention Credit 2022 Qualifications?

Employers in the private sector or tax-exempt organizations who carry on a trade or business during the calendar year 2020 and meet one of the following requirements are considered eligible for the employee retention credit in the year 2020:

fully or partially suspended operations during any calendar quarter due to orders from an appropriate government authority limiting commerce, travel, or group meetings due to COVID-19; or experienced a significant decline in gross receipts during the calendar quarter. full or partial suspension of operations during any calendar quarter due to orders from an appropriate government authority limiting commerce, travel, or group meetings due to COVID-19.
The criteria for eligibility have been revised for the year 2021.

For an employer to qualify for the credit, more than a minor amount of their company activities must have been halted during the relevant time period. A portion of an employer’s business is considered more than a nominal portion of operations for the purposes of the employee retention credit if either the gross receipts from that portion of business operations are not less than 10 percent of gross receipts (determined by the same calendar quarter in 2019) or the hours of service performed by employee in that portion of the business is not less than 10 percent of the total number of hours of service performed by all employees in that portion of the business.

What Is Adp Employee Retention Credit 2022 & Where To Find ADP Compliance Resources?

You have access to a wide variety of materials via the ADP, and you are free to make use of them as you see fit. They often keep on staff committed specialists who are able to assist you with regulatory measures that have an immediate impact on tax and benefit administration, as well as human resource management & payroll processing. Although they are a fantastic resource for the duties outlined above, you should always make sure that your paperwork is handled appropriately by contacting a trustworthy tax expert or firm that is aware with ERC. This will guarantee that your documents are processed in a timely manner.