Employee Retention Credit
Your business may qualify for a refund of up to $26,000 per employee
The Employee Retention Credit (ERC) is a refundable payroll tax credit available to eligible businesses impacted by the COVID-19 pandemic. It was enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and businesses can claim the ERC regardless of PPP loan status.
Use code UMPQUA10 for 10% off ERC services with EY (Ernst & Young).
Understanding the Employee Retention Credit
There are two methods by which businesses can be eligible for the ERC:
Decline in gross receipts
A business experienced a significant decline in gross receipts. Enter your quarterly details
Direct or indirect suspension
Business operations were disrupted due to government orders affecting the business, suppliers, or customers. Learn more
Eligible businesses can receive up to $26,000 per employee in a cash refund ($5,000 per employee for all of 2020 and $7,000 per quarter for the first three quarters in 2021). For example, if a business was eligible in Q2 2020, it will have until June 30, 2023, to apply.
Real World Examples:
|Type of Business||Eligibility Method||Total ERC||Employee Count|
|Local restaurant||Eligible employer through partial suspension||$210,000||15|
|Chamber of Commerce||Eligible employer through decline in gross receipts||$1,400,000||118|
|Gym||Eligible employer through full suspension||$250,000||50|
|Advertising firm||Eligible employer through decline in gross receipts||$770,000||55|
|Hospitality||Eligible employer through decline in gross receipts||$3,000,000||300|
|Oil and gas||Eligible employer through decline in gross receipts||$1,000,000||400|
The numerical examples are provided for illustrative purposes only. Actual client savings or benefits vary depending on specific fact patterns.
Calculate your ERC with EY
Start by running a free high-level estimate of your potential ERC. Then, sign up and get additional help as needed from EY tax professionals as you determine your business' eligibility and collect your information. After submitting all the required information, EY will return a detailed credit analysis and next steps document within 7 to 10 business days.