Employee Retention Credit (ERC) Services
Leverage the deep expertise and strict standards utilized by Experian Employer Services
Small businesses looking to take advantage of the Employee Retention Credit (ERC) must first assess whether it is appropriate for them to pursue. This is done by carefully reviewing all eligibility requirements and closely following IRS guidance.
The ERC process can feel overwhelming to understand and cumbersome to manage. That’s why Experian tax credit experts are here to help your business navigate the complex ERC landscape every step of the way.
The IRS has been warning employers of the many ERC scam promotions present in the market. They are advising employers to be wary of aggressive ERC ads that encourage businesses to apply even if it is not appropriate to do so due to ineligibility. Because of this influx of ERC scams, it is imperative to choose the right advisor who can help you assess your eligibility, understand limitations to eligibility, and educate you about income tax implications. At Experian, we’re aware of heightened scrutiny the IRS has placed on the ERC program and are committed to acting responsibly on behalf of all organizations we speak with.
Only employers who meet certain criteria articulated in the CARES Act and clarified by the IRS should consider applying. For a robust understanding of ERC eligibility requirements, it is best to connect directly with a tax credit expert to discuss eligibility within the context of your specific circumstances. However, here is a brief overview on eligibility requirements:
Employers could be eligible to receive the ERC for 2020 if their trade or business experienced either:
The credit for 2020 is 50% of up to $10,000 of qualified wages per employee paid during the period of eligibility, or up to $5,000 per employee.
ERC eligibility requirements were revised in 2021. Starting Jan. 1, 2021, eligible employers were those who operated a trade or business during 2021 and experienced either:
For 2021, the credit is 70% of up to $10,000 of qualified wages paid during each calendar quarter of eligibility, or up to $21,000 per employee.
The IRS describes a partial suspension of operations as either:
Understanding the eligibility requirements is crucial, as anyone who improperly claims the credit must pay it back and may owe penalties and interest.
Experian Employer Services is a national leader in tax credit services.
With 25 years of experience in state and federal employment-based tax incentive programs, you can be confident in choosing Experian as the right ERC advisor for your business.
Our tax credit experts will help:
Make sure you reach the best decision about whether or not your business should claim the ERC based on your individual facts and circumstances. Reach out to an Experian tax credit expert today!
The Experian Employer Services team was responsive and detailed in our Employee Retention Credit review. I feel very fortunate to have partnered with them.
No, the ERC is available to employers who staffed full-time and part-time employees in 2020 and/or 2021. Regardless of employment type, the ERC tax credit can only be applied to qualified wages and health plan costs made to employees during the period of eligibility.