You can qualify for the employee retention credit by providing evidence that your business faced operational disruptions or restrictions due to COVID mandates or government orders
Qualifying for the ERC can be simple through a straightforward revenue test. The IRS aims to determine whether there was a substantial decline in your revenue during either 2020 or 2021, as compared to the corresponding period in 2019
The ERC is a refundable payroll tax credit, paid as a check mailed by the IRS. This credit rewards businesses by refunding up to $26,000 for each W-2 employee they kept on payroll during the pandemic.
The Employee Retention Credit is a pandemic tax credit. To apply, businesses need to file a payroll tax amendment by submitting IRS Form 941-X for every quarter that they retained employees in 2020 and 2021. Many companies are eligible to receive up to $5,000 for each employee in 2020 and up to $7,000 per employee for the first three quarters of 2021 (up to $21,000). In total, your business may be able to receive up to $26,000 per employee kept on payroll throughout those two years.
Businesses of all sizes across almost every industry, including startups, nonprofits, corporations, LLCs, and small businesses can qualify for Employee Retention Credit. The rules for 2020 differ from 2021. The ERC tax credit is complicated and the IRS follows strict regulations to determine who can qualify.
The ERC is neither a loan nor a grant. It's a tax credit sent as a check directly from the IRS which does not need to be paid back.
Efficiently managing cash flow can be a challenge for small to mid-sized businesses. Omega Funding Solutions (OFS) offers ERC advance payments secured against your tax refund. If you can't wait for lengthy IRS processing, our ERC bridge loans provide immediate cash flow to cover business expenses
Omega is your ERC expert and helps businesses understand this unique tax credit.
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