The Employee Retention Credit is a payroll tax credit that allows you to receive up to $26,000 per employee retained in 2020 and 2021.
If your business experienced disruptions due to COVID-19 and you retained your employees, then you may qualify - even if you received PPP loans!
NEWITY can help you file amended tax forms to receive your credits. Connect with our team to ensure you receive every penny you deserve!
ERC allows businesses to claim payroll tax credits for each employee they retained during the COVID-19 pandemic in 2020 & 2021. Collectively, your business could be eligible to receive up to $26,000 per employee in refundable taxes. Here’s how the math works —
|Qualifications for 2020||Qualifications for 2021|
|50% of qualified wages paid per employee up to $5,000 per employee for that year||70% of qualified wages paid per employee up to $21,000 per employee for the year|
Our team of professionals will help you from start to finish, making sure that you get every dollar back that your business deserves.
The Employee Retention Credit (ERC) is a fully refundable tax credit available to businesses that were impacted by COVID-19. Born out of the same CARES Act as the Paycheck Protection Program (PPP), its goal is to provide economic relief for small and medium sized businesses who retained employees during the COVID-19 pandemic.
The ERC program allows you to claim up to $5,000 per employee your business retained in 2020 and up to $21,000 per employee your business retained in 2021.
These amounts are the maximum you can receive per employee through the ERC program and can vary based on your business’ specific financial situations.
By logging in and submitting your ERC application, NEWITY can determine how much you can save.
If your business experienced disruptions due to COVID-19 and government shutdowns, then your business will likely qualify.
Disruptions could include supply chain issues, staffing shortages, reduced hours or reduced capacity, inability to travel, and many more. Even if you received PPP loans, you likely still qualify.
Self-employed individuals, or sole proprietors, are not eligible for the Employee Retention Credit with respect to their own self-employment earnings. However, if you employ individuals in your business as full-time employees, then your business may qualify for the credit.
As of December 2021, any business who received PPP loans are eligible to also apply for the Employee Retention Credit!
How you accounted for your PPP loans in your bookkeeping will factor into your ERC refund, but does not disqualify you from applying.
Log into the NEWITY Portal and click ‘Apply Now’ to submit your application to the NEWITY team.
After submitting the form, NEWITY’s ERC team will follow up with you to confirm your submission details and collect specific supporting documents. With your application and documentation, NEWITY will calculate your ERC tax credit amount, organize the required paperwork, and prepare your Form 941-X for submission to the IRS.
NEWITY manages every step of the ERC application process and keeps you informed so you can sit back while the IRS processes your refund.
There are over 10,000 different sections of the tax code, each section with its own complexities and nuances. Our tax team is solely focused on ERC. We understand the complexities surrounding the program and can assist you in preparing and submitting your Form 941-X efficiently for your business’ maximum eligible credit.
It’s free to speak with our team and learn more about the ERC program and your potential eligibility. If you choose to work with us to complete your full ERC analysis and file your Form 941-X, our fee is 18% of your approved refund. NEWITY is only paid if your refund is approved and only after you receive your funds.
Our team can assess your eligibility and ERC savings with just a few documents, including:
Your ERC refund will be deposited into your account within 6-12 months of submitting your Form 941-X to the IRS. While the IRS’ processing time varies, NEWITY can help you efficiently submit your amended tax forms to initiate the IRS’ review as quickly as possible.
No! — Unlike PPP, ERC is a payroll tax credit. This means that you’re applying for a tax refund based on the payroll expenses you incurred during 2020 and 2021. ERC provides savings for your business that you can use freely for whatever you choose.
ERC funds are free use as you choose. They are a tax refund that you can spend when and how you see fit.