How the Updated Employee Retention Tax Credit Works and How to Get It

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What is the Employee Retention Tax Credit? 

The Employee Retention Tax Credit (ERTC) was introduced as part of the CARES Act and included tax credits for businesses to retain employees during the pandemic. The  ERTC is a refundable tax credit that can be claimed when eligible employers report their total qualified wages for purposes of the  ERTC for each calendar quarter on their federal employment tax returns. Due to new legislation, employers can now retroactively obtain both a PPP loan AND claim the ERTC. 

How Much ERTC Stimulus Can You Receive?

2020 Retroactive Credits:
The 2020 CARES Act established an employee retention credit of 50% of $10,000/employee in qualified wages for eligible businesses or $5,000 tax credit per employee.

2021 Credits:
The 2021 credits total 70% of wages up to $10,000 per employee per quarter. The result is a credit up to $7,000 per employee for up to four quarters in 2021 totaling $28,000.

How Can Asure Help? 

Current and new Asure clients can add on the ERTC filing service to their payroll service.  If your company is eligible for ERTC, Asure can assist with calculating the credits and filing amended payroll tax returns that allow you to claim your credits with the IRS. With this service, Asure will take care of all of the following: 

  1. Review Qualified Wages: With your payroll data, Asure will identify eligible wages – including qualified health plan expenses.

  2. Calculate Credit Amount: Asure will calculate eligible ERTC wages – taking into consideration the dates of your PPP loan.

  3. File Amended Returns: Asure will process the credits in our payroll system for audibility and file the necessary amended tax returns.

If you’d like help calculating ERTC wages and filing hte required amended returns to get your stimulus, go to www.asuresoftware.com/ERTC or watch the webinar "How the Updated Employee Retention Tax Credit Works and How to Get It". 

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