According to JP Morgan-Chase the #1 challenge facing small to medium size businesses is a shortage of cash on hand. The average small business in the U.S. usually only has enough cash on hand to see it through 27 days of operation. Having access to borrowed capital and streamlining operations are both ways to deal with this challenge. Post pandemic the Employee Retention Credit (ERC) is an often overlooked solution. (ERC) will get working capital back in your pocket and the best part is that it is NOT a loan. This is your cash to spend how you please.
The Employee Retention Credit, which was enacted as a part of the CARES Act in March 2020, was created to keep small businesses operational and staff on the payroll as businesses navigated pandemic-related shutdowns and restrictions. Businesses that kept W2 employees on their payroll during the pandemic can claim a credit on their qualified wages.
Under the CARES Act legislation, eligible employers can claim a refundable tax credit that is equal to 70% of the qualified wages they pay employees. ERC credit maxes out at $7,000 per employee per calendar quarter, for a total of $28,000 per employee in 2021 alone. Most businesses qualify in spite of taking on PPP loans and the average return is around 380k.
The easiest way to get ERC credit is to utilize a company like ERCbee™. ERCbee™ is the ERC filing expert. They are the best bet for maximizing your return and ensuring compliance in all filed documents. The Employee Retention Credit was designed to be a short-term fix to help business owners through the pandemic. The credit has already been extended twice since it was initially enacted. There is still time to act and and that time is now.