Let's have a look

Eligibility Requirements

1

You must be a “small business”

The government has defined a “small business” as:

Any employer that operates a trade, business, or a tax-exempt organization.

Having fewer than 100 full-time employees (calculated from 2019) for the 2020 ERC refund.

Having fewer than 500 full-time employees (calculated from 2019) for the 2021 ERC refund.

This was expanded for the ERC 2021 to include some governmental employers.

2

Your small business may be eligible for the ERC if it meets either of the following criteria:

Experienced a significant decline in gross receipts during the 2021 calendar quarter, more than a 20% decline versus the same quarter of 2019, and a 50% decline in the 2020 calendar.

OR

Had operations that were impacted by government orders due to COVID-19, resulting in limitations of commerce, travel or meetings. If your business was impacted due to a government order that caused one or more of the following, you may qualify:

Your business operations were interrupted.

There were interruptions with your supply chain.

There was an inability to access equipment.

Your business had a limited capacity to operate.

You were unable to work with your vendors.

Your hours of operation were reduced.

Your available services offered to customers were limited or reduced.

Eligible industries claiming the ERC payroll refund

While the ERC is available to small businesses of any kind, certain industries were hit harder by the pandemic, including restaurants, healthcare, construction, new business startups, manufacturing and more. The ERC is also available to non-profit organizations and churches, too. Although the ERC was originally designed for businesses, it is a tax refund that is applicable for eligible businesses who kept employees on payroll during the pandemic.

Get Started