EligibilityThe Employee Retention Credit (ERC) was created by the Coronavirus Aid, Relief and Economic Security (CARES) Act2, passed in 2020, to encourage employers to retain employees during the COVID-19 Pandemic in 2020 and 2021, by offering a refundable tax credit up to $26,000 per employee.
Recently, the ERC was expanded, as part of the Consolidated Appropriations Act, 2021 (‘the Act’), to include businesses previously ineligible to qualify for the ERC, since they previously received loans under the Paycheck Protection Program (“PPP”). These businesses can now receive retroactive and current ERC benefits. Companies, tax-exempt organizations, colleges and universities, and entities providing medical or hospital care are now entitled to ERC benefits in 2021, if they experienced a significant decline in gross receipts or sustained a full or partial suspension of operations due to orders from an appropriate governmental authority related to the COVID-19 Pandemic.
The IRS recently announced a pause in processing Employee Retention Credit applications. This allows for safeguards to be implemented to the ERC program to ensure the integrity of the applications and funds being provided. During this period, SouthState will continue to assist businesses with preparing applications for the ERC tax credit.
Learn more about the ERC Program