Employee Retention Tax Credit Case Study

Employee Retention Tax Credit Case Study

Many businesses received government mandates to shut down while facing reduced revenues during the COVID-19 pandemic. To provide aid to the most vulnerable businesses, our legislators provided the Employee Retention Tax Credit (ERC) to encourage employers to retain their employees during the COVID-19 pandemic. The ERC is available to businesses in numerous industries that suffered from government shut down orders, faced reduced revenues, or were impacted by supply chain issues.

Our latest ERC experience includes an assisted living community that was mandated to stop showing its facilities to potential residents and otherwise lost revenues due to COVID-19 related issues. ICS analyzed their eligible wages and calculated their ERC claim for the 2020 calendar year.

Q1 Eligible wages
$123,764
Q1 Credit
$61,631
Q2 Eligible wages
$233,771
Q2 Credit
$116,885
Q3 Eligible wages
$112,974
Q3 Credit
$56,489
Q4 Eligible wages
$49,126
Q4 Credit
$24,563

 

The total eligible wages were $519,635, which qualified for a total credit of $259,567 for the year 2020.

ICS can provide a complimentary analysis of your organization to determine if the ERC credits can be beneficial. Our team of ERC experts can determine if this incentive is right for your business.
» More information on ERC

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