Tax Feature

Employee Retention Credit –

Make Sure You Are Not Missing Out!

The Employee Retention Credit (ERC) continues to be a hot topic and provides potential for large cash refunds for those farming operations that can demonstrate the required decrease in gross receipts or other COVID-19 related shut-down parameters from Q2 2020 through Q3 2021.

The Employee Retention Credit (ERC) continues to be a hot topic and provides potential for large cash refunds for those farming operations that can demonstrate the required decrease in gross receipts or other COVID-19 related shut-down parameters from Q2 2020 through Q3 2021. GreenStone has helped numerous customers to receive this credit, with some exceeding $100,000 in refunds! The ERC was designed to help businesses that stayed open and kept their employees on the payroll during periods of COVID-19 related shutdowns. The rules surrounding the ERC changed numerous times since its initial release – at first you could not claim it if you also received a Payroll Protection Program (PPP) loan, then it was set to expire in 2020, next it was changed so PPP recipients could also receive the ERC, and so on. Remember how crazy the PPP rules were and how frustrating it was with all of its revisions? The ERC was similar. For that reason, the ERC may have fallen off your radar. Luckily, the IRS allows employers to claim the ERC by filing amended employment tax returns (941-Xs or 943-Xs). More detailed information on the ERC can be found at: https://www.irs.gov/newsroom/employeeretention-credit-2020-vs-2021-comparison-chart.