The CARES Act includes an Employee Retention Tax Credit (βERCβ), a fully refundable tax credit for employers equal to seventy percent (70%) of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees in each quarter in 2021, or fifty percent (50%) of qualified wages for the 2020 calendar year. Employers can claim an ERC of up to $7,000 per calendar quarter per employee for qualified wages paid between January 1, 2021 and December 31 2021, and up to $5,000 per year for wages paid between March 13, 2020 and December 31, 2020.
Case Study #3
Christian Assisted Living
Approximately 200 Employees
Received Paycheck Protection Program (PPP) funds
Eligible by business suspension
National orders
State orders
CDC guidelines
OSHA guidelines
The Assisted Living Facility was considered to be a large employer for 2020 (more than 100 full time employees), so they were only able to capture non-service wages and employer paid healthcare costs. Since the facility was considered a small employer for 2021 (less than 500 full time employees), the Facility was able to capture all wages paid and employer paid health insurance costs β greatly increasing their credit potential.
To learn more and get started, book a consultation today at: www.AmericasChristianCU.com/ERC