The pandemic was not easy on anyone, and businesses were certainly no exception. With less money being discretionarily spent by consumers, which makes it hard for businesses to rake in any revenue. Anticipating this, the federal government sought to provide employee retention credits (ERC).
The reasoning behind it is fairly straightforward. COVID-19 has been a major detriment to the economy, and the larger ramifications for numerous businesses shutting down is catastrophic. While the pandemic has died down, and the ERC Program officially ended in 2021, you can still receive funds retroactively. Businesses who are eligible, mainly those who were negatively impacted by the COVID-19 pandemic, can qualify for up to $26,000 per employee. There are four qualifications for ERC’s. COVID-19 must’ve negatively affected your revenue, COVID lockdown must’ve inhibited your workplace processes, you must qualify as a Recovery Startup Business in the 3rd or 4th quarter of 2021, and you must operate in the U.S. The amount of ERC earned is based on a few factors as well. Namely, how many full-time employees you had in 2019 and the wages paid to all employees.
Traditionally, this process is quite tedious, convoluted, and a four-to-ten-month slog. However, easier alternatives have sprung up to make it easier. Now, business owners can not only check ERC eligibility, but also to proceed easily if they do qualify. Credit League, one of these services, even advertises something as simple as a five-minute quiz to get the process started. Ultimately, the pandemic may have had a heavy toll on businesses, but if you take advantage of ERC’s, you can get back to business even sooner.