picture of tax withholdings form

The Employee Retention Credit (ERC) was enacted in the CARES Act in March 2020 and is a tax credit applicable to employment taxes. It is a refundable credit for qualifying employee wages and was enacted to support businesses who kept employees on the payroll during the COVID-19 pandemic.

In November 2021, the Infrastructure Investment and Jobs Act was passed into law, and with that Act, the ERC qualifying end date moved from 12/31/2021 to 9/30/2021. (This change applies for businesses other than ARPA Recovery Startup Businesses.)

ERC expired 9/30/21,but your business can still apply!

The Employee Retention Credit wasn’t eliminated.  Any eligible employers can still apply for those stimulus credits based on the business’ financials between 3/13/2020 and 9/30/2021.

Eligible businesses could be entitled a maximum of 70% of each employees’ qualified wages. The credit caps out at $7,000 per employee per quarter.

Who qualifies for retention credits?

Employers qualify for the retention credits if they were doing business in 2020 and/or 2021

    • and a government order shut down its operation partially or in full,
    • or the business had a reduction in gross receipts.

For profit and non-profits are eligible for the retention credits. Also eligible are some government entities such as public universities.


For the 2020 tax year, employers can qualify for the ERC in any quarter in which gross revenue saw a 50% decline from the same time frame in 2019


Employer eligibility for the 2021 tax year is based on 2021 gross revenue compared to the same quarter in 2019. If 2021 gross revenue saw a 20% decline compared to the same time frame in 2019, your business could qualify for the credit.

What are qualified wages for the ERC?

Qualified wages are the wages and other compensation the business paid to full-time employees in each quarter being considered. Health plan expenses can be included in the wages.

Do business owner wages qualify for the credit?

For individuals who are related to an owner who owns more than 50% of the business, their wages do not qualify toward the business’ ERC.

For the owner and the owner’s spouse, their wages do qualify for the tax credit.

How can a CPA help?

The Employee Retention Tax Credit can be a potentially significant refund into the business’ cash flow but filing the retention credit tax return correctly can be tricky.

We have a practiced process to evaluate your business to get you all the tax credits you qualify for, give us a call.

CPA Firm, Griffin & Furman, Expands Footprint in Louisiana

Baton Rouge, Louisiana (October 6, 2022) – Griffin & Furman, LLC, certified public accounting firm, is expanding its footprint in Louisiana with the addition of a Baton Rouge office. Effective September 16, 2022, Michael R. Choate and Company CPAs merged into...

Two Promotions at Griffin & Furman!

Thanks to their individual initiative, two of our team members have recently received promotions within Griffin & Furman.   We strive to recognize leadership in our team members, and because of their enterprising spirits, we have recently promoted Linda Alford to...

Prepare Now for Next Year’s Tax Bill

Reviewing your taxes should be an on-going habit to manage next year’s income tax liability and to discover any surprises. Looking over your taxes and finances in Summer generally still leaves you time to adjust and implement strategies to improve next year’s filing....

What is “Full Retirement Age”?

“Full retirement age” was established at 65 years of age in the Social Security Act of 1935, but since 1935, our life expectancies have improved, the Social Security program has evolved, and “full retirement age” is now different for everyone. What is full retirement...

Can I reimburse myself this year from my 529 for last year’s tuition expenses?

My daughter starts college this fall, but her 529 has lost some earnings in recent months. Can I leave the money in the 529 to give it a chance to maybe recoup some of the losses? Then reimburse myself later in 2023 for tuition expenses paid in 2022?The short answer...