WPO Image

Free Money For Businesses With The ERC Credit Scheme

The ERC, or the Employee Retention Credit, is a credit scheme created to financially support small to medium businesses through the COVID-19 restrictions.

According to the Chief Revenue Officer at ERC Benefits, the credit was, “Created as a way for small business owners to receive compensation based on the loss of earnings from the 2020 to 2021 time period. While the restrictions were necessary to preserve public health, there is no doubt that they have severely impacted businesses financially. That’s where the ERC comes in, its role is to help businesses continue to pay employees a full and liveable salary.”

Businesses are able to apply for the Employee Retention Credit under several conditions. The first condition is that they have maintained the same amount of employees throughout COVID-19 restrictions and have continued to pay them their full wages, regardless of how many hours they have worked. The second condition is that they would need to show a 20% reduction in their earnings over this time period.

Those who have received a Paycheck Protection Program (PPP) loan are still able to apply and qualify for ERC.

Myrtha Chang was one of many business owners affected by the pandemic. She is the founder and owner of Mathnasium, a math tutoring business.

“When the world came to a halt, so did my business. With the entire world transitioning to the online world and employment rates skyrocketing, the need for math tutors disappeared. Parents couldn’t afford to pay for tutoring for exams their children may not even take.”

Chang made the decision to continue paying her staff.

“It felt like the right thing to do. My tutors are hard workers, it wouldn’t be right to put them out of work. It also would have put too much strain on me, and the business’ already struggling finances to hire and train new tutors at a later date.”

Those like Chang who have chosen to keep their workforce can claim up to 50% of what they paid their workers in 2020, and up to 70% for 2021. A business doesn’t even need to have the same exact employees as when the restrictions started, they only need to have the equivalent number.

Those at ERC Benefits were able to assist Chang and many others in their claims.

“The consultant hired through ERC Benefits was wonderful. They were extremely knowledgeable and thorough with my claim. They did their best to ensure I got the highest amount I could be entitled to,” Chang expressed her satisfaction with ERC Benefits, “I was in complete awe when I saw the check cleared in my bank account. For the first time since the pandemic started, I had hope for my business again. With the ERC, I am confident we will be able to recover.”

Established businesses aren’t the only ones able to qualify either, businesses created in 2020 are able to apply for the ERC too, as long as they are able to prove they have received 20% less earnings than their forecasted earnings for the year.

Sadly, the ERC will not last forever. The credit will expire in 2023 and you will not be able to have an active claim for support past 2023. However, you will still be able to claim ERC during 2024 for the previous years. This will give businesses a little more time to gather and sort their proof for their claims.

ERC Benefits are ready and prepared to help any business throughout this time. Contact them on 561 680 4677 or visit ercbenefit.com to further enquire on applying for ERC, or for general advice or information relating to ERC.

CT911 News