The Employee Retention Credit (ERC) has proven to be a vital lifeline for businesses, especially small and medium-sized enterprises (SMEs), during these challenging economic times. However, determining if your business qualifies for ERC is the crucial first step in accessing this valuable financial relief. In this blog, we’ll delve into the ERC eligibility criteria, helping you understand whether your business qualifies for this significant support. Towards the end, we’ll also invite you to download our eBook, “Maximizing the Employee Retention Credit (ERC) for Small Businesses,” a comprehensive guide to help you make the most of this valuable resource.
ERC is designed to provide financial relief to businesses that have faced significant challenges during the COVID-19 pandemic. Here are the primary eligibility criteria:
Experiencing a Significant Decline in Gross Receipts: To qualify, your business must have experienced a substantial decline in gross receipts when comparing specific quarters in 2020 and 2021 to the same quarters in 2019. The specific percentage decline required may vary based on the legislation in effect for each year.
Partial or Full Suspension of Operations: Alternatively, your business may qualify for ERC if it faced a partial or full suspension of operations due to government orders related to COVID-19. This includes restrictions on business operations that significantly impact your ability to continue normal operations.
Size of the Business: ERC is available to a wide range of businesses, including those with fewer than 500 employees. Special rules apply to certain businesses with more than 500 employees.
To determine if your business qualifies for ERC, you need to carefully review your financial records and assess the impact of COVID-19 on your operations. Here’s a step-by-step approach:
Gather Financial Data: Collect your business’s financial data, including gross receipts for each quarter in 2020 and 2021. Ensure you have accurate records to support your ERC claim.
Compare Gross Receipts: Calculate the percentage decline in gross receipts by comparing specific quarters in 2020 and 2021 to the corresponding quarters in 2019. If the decline meets the required threshold, your business may be eligible.
Review Government Orders: If your business faced a partial or full suspension of operations due to government orders, document the orders and their impact on your operations.
Consult with Experts: Navigating ERC eligibility criteria can be complex. It’s advisable to consult with experts like Better Way Solutions who specialize in ERC for SMEs. They can help you assess eligibility accurately.
Determining ERC eligibility is a crucial step in accessing this valuable financial relief for your SME. If you’re uncertain about your eligibility or need assistance with the application process, contact Better Way Solutions today. Our team of experts is dedicated to helping businesses like yours make the most of ERC.
To gain a deeper understanding of ERC and how to maximize its benefits for your SME, we invite you to download our eBook, “Maximizing the Employee Retention Credit (ERC) for Small Businesses.” This comprehensive guide provides insights into the ERC program, eligibility criteria, application process, and strategies for optimizing your ERC benefits. It’s a valuable resource that can help your SME thrive during these challenging times.
Don’t miss out on the opportunity to secure financial relief for your SME through ERC. Contact Better Way Solutions today for expert guidance on ERC eligibility and application. We’re here to support your business’s success in navigating these challenging times.
Unlock the full potential of ERC with Better Way Solutions. Contact us now to explore ERC eligibility and to download our eBook, your roadmap to maximizing ERC benefits for your SME’s financial stability and growth.
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