Employee Retention Credit
How it works and How to Get It
Want to take advantage of the Employee Retention Credit (ERC) but not sure where to start?
In the Employee Retention Credit under the CAA act, the credit was opened up to more businesses. The credit is a way to encourage businesses to keep employees on their payroll and to help businesses recover from the pandemic.
This credit is helping many of our clients that experienced a major reduction of their gross revenues in 2020 due to the pandemic or other issues. It is also helping business owners who were shut down by Governor Jay Inslee’s Stay Safe Stay Home order in March of 2020.
The IRS issued guidance on these credits and examples of how this credit works. This included the interplay between the ERC and PPP loan forgiveness in IRS Notice 2021-20.
Here are a few details on how this is impacting businesses.
ERC credits are limited for large employers with more than 100 full-time employees. But if you run a small business, there could be credits to help your business recover from the pandemic.
Need help with the Employee Retention Credit?
Shannon & Associates LLP
Certified Public Accountants,
1851 Central Pl S #225
Kent, WA 98030
Phone: (253) 852-8500
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From a financial reporting standpoint, Shannon & Associates has been the constant during all of our ownership and staff changes. They are up to speed on all accounting rules and changes and have helped us streamline our procedures through a period of rapid growth. In addition to being very accessible, they provide a level of expertise that we would be unable to afford in-house.