Can auto dealerships use the ERC program and what is it?
The Employee Retention Credit ( ERC ) is $26,000 per employee. To be eligible your business just had to be affected by Covid in someway. This can be as minor as having to close for a day, requiring appointments, a reduction in revenue because your clients were affected, restriction of operating hours etc. As you can see, the requirements are pretty broad since they set aside $5.1 Trillion for the ERC program for US business owners. These changes are the latest effort to stabilize the economy and provide emergency relief regardless of past programs you may have participated in (including PPP). The ERC is not a loan, nor a grant.
First, employees who receive a W-2 are paid through their employer's payroll and have their payroll taxes withheld throughout the year. Now, the ERC tax credit is applied against employment taxes for the business, offsetting most if not all liability in employment tax. What happens if your credit is more than you owe in employment taxes? The IRS sends you a check back for the difference! We work very closely with your CPA/accountant/auditor.
The Employee Retention Credit ( ERC ) is $26,000 per employee. To be eligible your business just had to be affected by Covid in someway. This can be as minor as having to close for a day, requiring appointments, a reduction in revenue because your clients were affected, restriction of operating hours etc. As you can see, the requirements are pretty broad since they set aside $5.1 Trillion for the ERC program for US business owners. These changes are the latest effort to stabilize the economy and provide emergency relief regardless of past programs you may have participated in (including PPP). The ERC is not a loan, nor a grant.
First, employees who receive a W-2 are paid through their employer's payroll and have their payroll taxes withheld throughout the year. Now, the ERC tax credit is applied against employment taxes for the business, offsetting most if not all liability in employment tax. What happens if your credit is more than you owe in employment taxes? The IRS sends you a check back for the difference! We work very closely with your CPA/accountant/auditor.
