ERTC FAQs
Why am I just hearing about the Employee Retention Tax Credit?
How do I qualify for the retroactive 2020 credit?
Businesses who paid under 100 employees (full time equivalents) in 2019
AND If during COVID the company had partial or total business closure due to federal, state or local COVID order
OR more than 50% reduced gross revenue as compared to the same quarter in 2019.
Businesses then remain eligible until the end of the first quarter where their revenues go back up over 80% compared to the same quarter in 2019.
(NOTE: New businesses who do not have 2019 revenue can compare to prior quarters.)
How do I qualify for the 2021 ERTC credit?
Businesses who paid under 500 employees (full time equivalents) in 2019
AND If during COVID the company had partial or total business closure due to federal, state or local COVID order
OR more than 20% reduced gross revenue as compared to the same quarter in 2019.
(NOTE: You do compare 2021 revenue to 2019 revenue still. Think of it as comparing pre-covid numbers to during-covid numbers.)
Will this affect my PPP Loan forgiveness?
How is the ERTC calculated retroactively for 2020?
How is the ERTC calculated for 2021?
Why am I getting this credit?
Will we need to pay taxes on this refund?
How will I receive the refund?
When can I expect to receive the refund?
When does Payroll Vault collect their fee?
Is this legitimate legislation?
I started my business in 2020, but didn’t close or have reduced revenue. What credits are available to me?
I am a small business owner who was in business for a few years leading up to the pandemic. I was not closed nor did I have reduced revenue during Covid. Am I eligible for ERTC?
Was the ERTC extended for all quarters in 2021?
Not yet. There is a bill with Congress to extend the credit through the 4th quarter of 2021 but it has not been passed yet.
I am a new business who received both rounds of PPP loans. Can I still take advantage of the ERTC?
