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ERC Qualification Requirement: Know Your Eligibility

Employee retention credit (ERC) helps employers to pay salaries to their employees while facing a financial crisis caused by the pandemic.

10 Reasons For Companies to Claim ERC

Revenue reduction in any quarter of 2020 and/or 2021

Lack of group meetings

2.

1.

Full or partial suspension of your operations

Reduction in services offered

3.

Shutdowns of supply chains or vendors

4.

5.

A disruption in your business

Lack of travel

7.

6.

Inability to visit a client’s job site

Change in job roles and functions

8.

The inability to deliver the goods and materials to suppliers

9.

10.

ERC Eligibility: Understanding Who Qualify for it

ERC can only be dispersed to employers who have seen a significant decline in gross receipts or have been subjected to a government shutdown order.

The employer must have maintained its workforce at 80% of its pre-downturn level.

The credit can surely be claimed against payroll taxes equal to 50% of the wages paid to employees during the period of economic downturn.