Small Business Resources

Many small businesses continue to struggle after months of closures and restrictions, even after receiving Payment Protection Program loans. However, most aren't aware of Employee Retention Tax Credit (ERCT). It's a payroll tax credit most small businesses don't know about.

What's the ERCT?

According to the IRS website:

"The Employee Retention Credit under the CARES Act encourages businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19."

Does my business qualify for the ERCT?

Businesses with employees that were either partly shut down due to COVID‑19 or suffered a loss of business in 2020 or 2021 are eligible for the Employee Retention Tax Credit.

How much does the ERCT provide?

In 2020, eligible businesses were able to file for a maximum ERTC of $5,000 per employee for the whole year. In 2021, the maximum credit increased to $7,000 per employee, per quarter. That means a maximum of $28,000 per employee each year.

Tom Sauvageau, a Washington based small business consultant, launched www.ERTCFiling.com to help small businesses file for the ERCT. It also has a free calculator tool that anyone can use to estimate how much money they might be eligible for.

Here are a couple more ERCT resources:

• The IRS Employee Retention Credit under the CARES Act webpage
• A KGW article about the ERTC posted June 4, 2021