Employers across all industries are claiming an Employee Retention Tax Credit (ERC) of up to one million dollars (and sometimes more). Organizations of all types (including tax-exempt nonprofit organizations) are still eligible, even if they have received PPP loans or other pandemic assistance. To determine if your organization could claim an ERC, take this short questionnaire developed by MP’s HR and payroll experts. Your business may qualify with just one “yes” answer. The questions are divided into a few categories: general questions, restrictions, social distancing and hours of operation, suppliers and vendors, and remote work. (If your organization does qualify, MP’s payroll services experts can help get your ERC in process in as little as 15 minutes.)
ERC Eligibility Questionnaire
ERC General Questions
1. Can your organization demonstrate a 2020 revenue loss of 50% or more for a calendar quarter as compared with the same quarter in 2019?
2. Can your organization demonstrate a 2021 revenue loss of 20% or more in any quarter(s) of the year as compared to the same quarters of 2019?
3. Were employee hours ever limited by government orders in 2020 or 2021?
4. Were your employees ever unable to go to work due to the pandemic or government orders in 2020 or 2021?
Restrictions and the ERC
1. Were there ever any restrictions on the use of your organization’s physical space, thus impacting your ability to serve customers and clients?
2. Did any government orders obstruct your business from operating at its maximum capacity?
3. Did your business ever need to operate at a lowered capacity during the pandemic?
4. Were your employees ever unable to use your physical workspace or your organization’s physical assets?
5. Restaurants/hospitality: Did you need to reduce hours of operation to limit the selling of alcohol?
6. Did you need to reduce hours to clean and sanitize?
Social Distancing and Hours of Operation
1. Did your business ever have a limitation on gatherings, (which affected operations)?
2. Was there ever a partial or complete shutdown of your business or organization?
3. Did your clients or customers need to socially distance on your business premises?
4. Were your hours ever limited in any way?
Suppliers and Vendors and the ERC
1. Did pandemic-related supplier chain issues ever impact your business or organization’s ability to serve your clients or customer base?
2. Did your business ever experience a service provider disruption during the pandemic?
Remote Work and the ERC
1. Did your employees ever need to work remotely, resulting in limitations on their performance?
2. Were your employees ever restricted from working on-premises?
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