Accelerate America Blog

The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage businesses to keep their employees on payroll during difficult economic times, such as during the COVID-19 pandemic. This article will explain how to apply for the employee retention credit, while providing a comprehensive overview of the program, including its requirements, application process, qualifying wages, benefits, challenges, frequently asked questions, and limitations. Overview of Employee Retention Credit Requirements The Employee Retention Credit (ERC) is a refundable tax credit that was introduced as part of the CARES Act in March 2020. The credit is designed to help businesses keep employees on their payroll during the COVID-19 pandemic. To qualify for the ERC, employers must meet certain criteria. First and foremost, they must have experienced a significant decline in gross receipts, which is defined as a reduction of at least 50% compared to the same quarter in the previous year. This dec...

The COVID-19 pandemic has caused unprecedented challenges for businesses around the world. As a result, governments and financial institutions have introduced several relief measures to help businesses weather the crisis. In this guide, we will walk you through the step-by-step process of applying for vital COVID relief for your business. Types of COVID Relief The COVID-19 pandemic has had a significant impact on businesses worldwide, with many struggling to stay afloat due to reduced revenue and increased expenses. Fortunately, there are various types of COVID relief programs available for businesses, aimed at helping them retain staff, cover expenses, and stay afloat during these trying times. It is crucial to understand the different programs and identify the most suitable ones for your business needs. Here are some of the most common COVID relief programs: Paycheck Protection Program (PPP) The Paycheck Protection Program (PPP) is a loan program established by the U.S. Small Busines...

The Consolidated Appropriation Act of 2021 introduced several significant changes to the Employee Retention Credit (ERC) program, aimed at providing additional financial relief for businesses affected by the COVID-19 pandemic. This article will walk you through the key changes, new eligibility criteria, enhanced benefits, and limitations of ERCs in 2021, as well as share some helpful tips for applying. What Are the Key Changes to the Employee Retention Credit in the 2021 Consolidated Appropriation Act? The Consolidated Appropriation Act of 2021 brought several important updates to the Employee Retention Credit (ERC) program, as it seeks to provide greater support for businesses looking to maintain their workforce during these challenging times. The ERC is a refundable tax credit that helps eligible employers keep employees on their payroll, even if their business is experiencing financial hardship related to COVID-19. This section presents a summary of the most noteworthy changes to ER...

The Paycheck Protection Program (PPP) has been one of the most essential sources of relief during the COVID-19 pandemic. It has enabled small businesses to maintain payroll and protect jobs while providing financial assistance to struggling companies. One of the key benefits of the PPP is its direct impact on the employee retention credit (ERC), which is designed to incentivize businesses to keep employees on their payroll during tough financial times. In this article, we will explore the ways in which the PPP affects the employee retention credit and how businesses can use it to their advantage. We will take a closer look at the intersection of the PPP and ERC, examining their overlapping features and unique benefits for businesses. Examining the Impact of the PPP on Employee Retention Credit Before diving into how the PPP impacts the ERC, it's important to understand the purpose and eligibility criteria for both programs. The Paycheck Protection Program was established under the ...

The Employee Retention Credit (ERC) has been a crucial element in many businesses' financial strategies during the COVID-19 pandemic. By providing tax savings and adjustments, employers have been able to maintain operations while retaining as many employees as possible. This article will explore the tax implications of the credit and offers guidance to ensure businesses maximize the benefits of the ERC and avoid common mistakes. What are the Tax Implications of the Employee Retention Credit? The Employee Retention Credit is a valuable tax incentive that can help businesses keep employees on their payroll during the COVID-19 pandemic. This credit is a part of the CARES Act, which was signed into law in March 2020 to provide relief to businesses and individuals affected by the pandemic. Under the Employee Retention Credit, eligible employers can receive a refundable tax credit equal to 50% of qualified wages paid to employees, up to a maximum credit of $5,000 per employee. This credi...