Is your small business eligible for the Employee Retention Credit?

Your small business may be eligible for a significant refundable tax credit if it was financially impacted by the Covid-19 pandemic

The Employee Retention Credit (ERC) is a stimulus program created by the CARES Act. This program offers employers a significant refundable tax credit for retaining employees during the pandemic. The ERC program was overshadowed by the PPP (Paycheck Protection Program) in 2020. The ERC credit now can be applied to businesses and nonprofits even if they received PPP money in the past. The total maximum per employee you can qualify for is $26,000 per eligible employee for 2020 and 2021. This program, as authorized by Congress, is first come first serve.

There are 4 different options in which to qualify for the Employee Retention Credit


Did you start your business after Feb 15th, 2020?


Did your business or suppliers have supply chain disruptions that didn’t allow your business to function properly?

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Did you see a reduction in gross revenue from your business or non-profit in 2020 or 2021 compared to 2019?

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Was your business affected by a partial or full suspension of business due to government covid mandates or policies that affect your ability to conduct business?

If you meet any of this criteria, let’s take a look at your potential tax credit

ERC process

How this Process Works

This projection will consider the number of employees, revenue, supply chain disruptions, and COVID government mandates. To move forward with your application there are two ways in which the employer pays for the cost of the application.
First, you can pay 10% upfront based of the total credit amount projected. This does give you a discount but be aware the IRS can take up to 4-8 months to process your tax credit. Otherwise, you can pay 15% on the back end of the total tax credit.

Common Misunderstandings

This option ensures no one gets paid until you, the business, gets the tax credit.
This is a payroll tax credit, not an income tax credit. You can be a non profit business or not pay income tax and can still qualify.
Even if you made more revenue in 2020 and 2021, you can still qualify.

Joseph Gebhart, AAMS  CRPC

Have more questions?

Joseph Gebhart, AAMS CRPC

Credentialed Wealth Advisors | Wealth Manager, Pueblo, CO