Examples of some clients
Business - Manufacturing
Business - Manufacturing
Business - Manufacturing
A manufacturing company with annual revenue of $115 million and 246 employees received a credit equal to $1.06 million in Q1 of 2021.
A few of their qualifying disruptions included:
– Supply chain interruptions.
– Inability to access equipment.
– Limited capacity to operate.
Nonprofit
Business - Manufacturing
Business - Manufacturing
A nonprofit with $4 million in revenue and 250 employees received over $1 million in refundable credits by partnering with Profits USA to complete their Employee Retention Credit study.
A few of their qualifying disruptions included:
– Fully or partially suspended operations due to government order.
– Limited commerce, travel, and meetings due to COVID-19.
– Reduced hours for sanitation.
Small & Large Employers
Small employer example - 100 employees
Small employer example - 100 employees
Small employer example - 100 employees
100 full-time employees and qualifies for ERTC and furloughs 10% of staff.
Because the firm is a small employer, the ERTC formula looks at wages paid to ALL 100 employees.
1. In 2020, the firm received $500,000 of credits ($5,000 per employee).
2. In 2021, the firm is eligible for $7,000 per employee per quarter which is $2,800,000 annually or $700,000 each quarter.
Large employer example - 500 employees
Small employer example - 100 employees
Small employer example - 100 employees
Employer with 500 full-time in 2019. In 2020, furloughed but continue to pay 20 of these workers.
Because the firm is a large eligible employer, only the wages for employees count in the ERTC calculations.
- In 2020 that might mean the firm receives $100,000 of credits for the year ($5000 for each of the 20 employees).
- In 2021, the firm receives $140,000 for each quarter it’s eligible ($7000 for each of the 20 employees).