Employee Retention Tax Credit

Recently, the ERTC was expanded and extended as part of the Consolidated Appropriations Act, 2021 (“the Act”) to include the following provisions:

• Employers previously ineligible to claim the ERTC, because they received loans under the Paycheck Protection Program (“PPP”), can now claim retroactive and current ERTC benefits in w2020.
• Companies, tax-exempt organizations, colleges and universities, and entities providing medical or hospital care are now entitled to ERTC benefits in 2021 if they experience a decline of more than 20% in gross receipts as compared to their gross receipts for the same calendar quarter in 2019.
• In 2020, the maximum allowable credit per eligible employee is $5,000. In 2021, the maximum allowable credit per eligible employee is $7,000 (per quarter). Your business could capture up to $33,000 per eligible employee through the Employee Retention Tax Credit program.
• The limitation on credit-eligible qualified wages was increased from $10,000 per employee, per year to $10,000 per employee, per quarter.
• The rules for employers with 100 or fewer employees were expanded to include employers with 500 or fewer employees.
• Rockerbox works with every client to maximize their participation in the Paycheck Protection Program (PPP) and the Employee Retention Tax Credit program (ERTC). Our team of tax credit experts do not charge extra for helping you optimize both programs. Rockerbox will even help you file for PPP Loan Forgiveness (Round 1 and Round 2).

Healthcare Providers
Since the credits captured through the ERTC offset payroll taxes, both for-profit and non-profits are eligible to participate.

Restaurants
Most restaurant owners were impacted by government shutdown orders in both 2020 and 2021. Even a order limiting capacity can lead to your restaurant being eligible for ERTC.

Physicians / Dentists
Depending on your practice and specialty, your practice could be eligible for the ERTC program (even essential practices like family practitioners).

Golf Courses / Clubs
Many golf courses have three or four revenue streams (Golf, Memberships, F&B and Events). The latter two revenue streams were more than likely materially injured during 2020 and 2021.

Children Schools
Most schools, whether they be private or non-profit were asked to shutdown or reduce their capacity in 2020 and 2021. Cheer schools, dance schools, gymnastics schools, swim schools and other third party institutions of learning may qualify.

Churches / Temples
Many places of worship were asked to shutdown and/or materially limit the number of parishioners participating in activities and services.

Law Firms
Many law firms and attorneys were unable to engage with local, county and Federal courts during the pandemic.

Casinos
Most casinos inside and outside of Las Vegas were shutdown for extended periods during the pandemic.

SMB Owners in NY, CA, NJ
States like New York, California, New Jersey, Washington, and Oregon were fairly aggressive with issuing shutdown orders throughout 2020 and 2021.

Many Others
Don’t see your industry listed above? Contact us today to understand if your business is eligible for ERTC!