Criteria #1: Must Issue a Formal Payroll
Employers must file Form 941s and W-2s. (Sole-proprietors are ineligible)
Criteria #2: Eligible Employee Headcount
Employers must have below a certain number of full-time employees in 2019. (NOTE: this is not the same as full-time equivalents – FTEs)
– 2020 program: fewer than 100 full-time employees (unlimited part-time employees)
– 2021 program: fewer than 500 FT employees
(unlimited part-time employees)
Criteria #3: Must Meet one (not necessarily both) of:
A: Reduced Business Receipts (Sales for a Calendar Quarter)
For example: A business with $100k in sales for Q2 2019 vs
– Q2 2020: eligible with < $50k in sales (or 50% lower)
– Q2 2021: eligible with < $80k in sales (or 20% lower)
B: Must have been fully/partially shut down by government order
A “Stay At Home” order for non-essential businesses, or a capacity limit for a restaurant, would meet this test. (The order is likely jurisdiction specific.) You can also have the same, or even more sales, and still qualify.
Recovery Start Up Business (RSB)
The RSB was another ERC option established in August of 2021 for new businesses that started operations after 2/15/20 and was included in the signed Infrastructure Bill. Businesses can qualify for up to $50k in Q3 & $50k in Q4 of 2021 if you meet the following criteria:
Use our secure portal to upload your 941 returns, PPP loan documents, and raw payroll data.
We will use our expertise to calculate the exact value of the credit you can receive from the IRS.
We will prepare and help file the 941-X Amended payroll returns.