Posted by ACCU Staff ● Jun 15, 2021 11:03:05 AM

Employee Retention Tax Credit: Case Study #5

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The CARES Act includes an Employee Retention Tax Credit (“ERC”), 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 #5

A top private university in the Midwest with approximately 1,000 full time employees was referred to us through an Alumni Board Member. The university was impacted by county and state mandated orders and follows Centers for Disease Control and Prevention (CDC) and Department of Public Health (DPH) guidelines. The university experienced building closures, limited dining services, remote classes, limited workplace/classroom capacity, enhanced cleaning procedures, social distancing, and more.

The university originally calculated the credit internally and was doubtful that more credits could be found. We were able to show how we evaluate the individual nuances to calculate and maximize credits. The university was also concerned about the amount of workload that would be put on their internal finance team, and we were able to demonstrate how much of the manual work is taken off their plate, plus by us doing the work, we keep them in compliance and defend all work delivered. While we are still in the process of collecting data to calculate the credit, we estimate the university should receive over $1.6M in credits – over 30 times more than their original calculated credit.

To learn more and get started, book a consultation today at: www.AmericasChristianCU.com/ERC