The Employee Retention Credit (ERC) under the CARES Act is a great way for companies to keep their employees on payroll. This refundable tax credit is calculated based on the qualifying wages paid to employees during their status as an eligible employer. In many cases, the ERC benefits can be greater than the amounts a company received in PPP funding. The ERC is available to churches and other religious organizations that were affected by capacity restrictions imposed by the government for meetings or that experienced a significant decrease in their gross revenues.
This credit is a fully refundable tax credit that eligible employers can request to cover certain payroll taxes. To learn more about the ERC, visit Cherry Bekaert's ERC Guidance Center or contact Martin Karamon. Many businesses have been hit hard by the COVID-19 pandemic and, while no government program can fully make up for the profits lost due to closures and other losses, the ERC can provide some much-needed relief. Skilled nursing facilities have tended to overlook the ERC due to its complexity, even though they may meet the eligibility requirements.