As a business finance consultant, Rock Capital & Associates understands the importance of maximizing available resources to help clients grow and thrive. One such resource is the Employee Retention Credit (ERC), a refundable tax credit that incentivizes employers to keep employees on their payroll during the COVID-19 pandemic.
What is the Employee Retention Credit?
The Employee Retention Credit is a refundable tax credit designed to help businesses retain employees during the COVID-19 pandemic. The credit is available to eligible employers who retained employees despite experiencing a significant decline in gross receipts or who were forced to suspend operations due to a COVID-19-related government order. The credit is equal to 50% of qualified wages paid to employees, up to a maximum of $10,000 per employee per quarter.
The ERC was first introduced in March 2020 as part of the CARES Act and has been extended several times, most recently through December 31, 2021, under the Consolidated Appropriations Act of 2021. The credit is available to eligible employers regardless of size or industry, and it can be claimed in addition to other COVID-19-related relief programs like the Paycheck Protection Program (PPP).
Example Deal: $105,000 for Delaware Child Care Facility
Rock Capital & Associates recently helped a Delaware Child Care Facility secure a $105,000 ERC through a partnership with Smartbiz. The facility had experienced a significant decline in gross receipts due to the pandemic and was struggling to retain employees. We partnered with the business and gathered 6 quarters of IRS Form 941 filings and the related Payroll reports to quickly complete the application process, ensuring that they received the maximum credit possible.
The $105,000 ERC provided much-needed relief to the facility, allowing them to retain their employees and continue providing essential services to families in the community. As a business finance consultant, we are proud to have played a role in securing this critical funding.
How to Apply for the Employee Retention Credit
If you are interested in applying for the Employee Retention Credit, we encourage you to visit our ERC portal.
