We can help with Employee Retention Credit (ERC)

Payroll News for 2021

April 2021

Hello!

Payroll News for 2021

PayPlus Can Help You Take

the Employee Retention Credit (ERC)

The Employee Retention Credit (ERC) is a refundable tax credit against certain employment taxes.

The credit is claimed on the Employer’s amended quarterly Federal Tax Return, Form 941x.

PayPlus can process the tax credits for our clients. Because this requires time-consuming, manual calculations, there is a fee for this service. For details, click here for details and the Employee Credit Request form. This form is required for us to start the ERC amended returns.

Do you qualify?

What are the limits?

The wage limit is $10,000 per employee per quarter. The credit limit for 2020 was 50% of wages, with a maximum credit of $5,000 per employee, per year. For 2021, the wage limit was increased to 70% of wages, with a maximum of $7,000 per employee, per quarter ($14,000 maximum for Q1 and Q2).

Exceptions

The following wages are ineligible for Employee Retention Credits:

Wages paid to most family members
Wages paid to the business owner
Wages paid through PPP loans (a PPP loan no longer blocks eligibility, but PPP funds applied to payroll are ineligible for ERC)