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Employers who are qualified, including PPP participants, can claim a credit of 70% of qualified wages. The credit can also be used for wages up to $10,000 per quarter. Read more about ERTC tax credit here. IRS FAQ #30 clarifies that essential businesses may have experienced a partial suspendion if more than a minor portion of their business operations were suspended under a governmental order. An example: A partial suspension may be imposed on an employer who maintains both essential or non-essential business operations. This is even though the essential business remains unaffected by the governmental order. https://vimeo.com/769975662

Who Qualifies for Employee Retention Credits (ERC)

Businesses required to suspend some or all operations due to COVID-19 government restrictions or companies that lost 50% of their gross receipts from the same quarter of the previous year qualified for the ERC.

Read more about employee retention credit here. The 2019 and 2020 limitations on business interest expense deductions have been amended The limitation on the deduction of business interest expense increased from 30% to 50% of adjusted taxable income . Taxpayers can use their 2019 ATI to determine the 2020 business income deduction limit for any year beginning in 2020. This is significant because many businesses will be negatively impacted by 2020's slowing economy and will likely have lower adjustable taxable income. The average annual premium per individual is divided by each employee's average number of working days in a year to calculate the average daily employee premium.

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Although the employer is deemed an essential business, it is considered to have experienced a partial suspension of operations due to the governmental order preventing elective and non-urgent medical procedures. To illustrate, in Example 4, a hospital operates an essential business under a governmental order with respect to its emergency department, intensive care, and other services for conditions requiring urgent medical care. Although the employer is considered essential, it is subject to a partial suspension of operations by the government order that prohibits non-urgent and elective medical procedures. The Relief Act amended and extended employee retention credit under section 2301 (CARES Act) for the first two calendar quarters in 2021. The ARP Act modified the employee retention credit and extended it for the third and forth quarters of 2021.

What is the Employee Retention Credit Per Head?

The ERC was $10,000 per employee from March 2020 to December 2020. From January to September 2021, the ERC was $7,000 per employee per quarter. The ERC was the same for recovery startups from September to December 2021; it has since been discontinued.

Great news for physician practices and medical offices that were impacted during Covid-19. You may be eligible for the #employeeretentioncredit tax refunds! Watch this video to learn more about this incredible opportunity to help you get back on your feet.https://t.co/21D5GnFslm

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To defray the cost of paying employees even when they are unable to work, the CARES Act includes the Employee Retention Tax Credit. Employers eligible for the Employee Retention Tax Credit are reimbursed with a refundable tax credit of 50% on covered wages up to $10,000, paid between March 13th and Dec. 31, 2020. The qualification for a reduction in gross receipts is dependent on whether an employer is applying for the 2020 or 2021 ERC.

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Cherry Bekaert LLP and Cherry Bekaert Advisory LLC offer professional services under the brand name Cherry Bekaert. You can learn more about Cherry Bekaert's Employee Retention Credit, and get guidance to help you qualify for it by contacting your Cherry Bekaert advisor. Martin Karamon is the Tax Principal and leader Cherry Bekaert's ERC Services Team. This is a practice in which hospital access restrictions prevented certain medical procedures from being performed. A medical practice where doctors were prohibited from performing elective procedures in accordance with COVID orders. PEO/CPEO customers with reduced employment tax deposits and advance payments made by filing Form 7200 will need these to be repaid under their PEO/CPEO records.

• If applicable, coordination with second draw Paycheck Protection Program loans
• The ERC is a refundable credit that can be used to offset the tax on qualified wages paid between 2020 and 2021.
• Some of these changes will apply to 2020 and 2021. However, many of them are only applicable to 2021.
• The credit is 70% of up to $10,000 in qualified wages for 2021 per full-time employee, beginning Jan. 1, and ending Dec. 31, respectively.
• Employee Benefits - Provide benefits such as vision, dental and health care to help you recruit and keep employees.

The ERC applies only to days when your business is temporarily or permanently shut down or modified by a government order. For example, if your injuries were sustained for 27 days, then you are eligible for the credit. The government order is your only option if you are unable to qualify for the 50 percent or 20% decline in gross receipts tests. It is important to establish a solid definition for eligible wages. It could be different for companies deemed large employers under credit.

Some small business owners enjoy a third way to qualify for employee retention tax credits in the third and fourth quarter of 2021. An Eligible Employer will use one premium rate for all employees. The average annual premium rate is $5.2 Million divided by 400, which is $13,000. For each employee with 260 work days per year, this results is a daily average premium of $13,000 divided into 260 or $50.