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CARES Act Employee Retention Credit

Has your business been impacted due to the COVID crisis? You could be eligible for a refundable retention credit of up to $33,000 per employee. The Credit can offset all federal tax deposits which can be 25%-30% of payroll costs anything above that amount is refundable by filing the proper forms.

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    In December 2020 the Consolidated Appropriations Act, and in March 2021 the American Rescue Plan Act were signed by the President providing additional COVID-19 relief packages for businesses. Specifically, this new legislation amends, expands, and enhances the CARES Act Employee Retention Credit (ERC). The legislation is broken down into two segments:

    Here is an overview of the credit for 2020:

    The Federal government passed the CARES (Coronavirus Aid, Relief and Economic Security) Act on March 27, 2020.

    Any private sector or non-profit employer, regardless of its size, is eligible for the Employee Retention Credit during calendar year 2020.

    To be eligible, the business must:

    1. Be fully or partially suspended due to government order due to COVID-19, or
    2. incur a 50% decline in gross receipts from the same quarter in 2019, between 3/13/20 through 12/31/20.

    The Employee Retention Credit is equal to 50% of qualified wages paid per employee. Currently, the Act places a $5,000 total cap on the credit per employee for the 2020 tax year.

    “Qualified wages” varies depending on the number of employees. The credit is available for qualified wages from 3/13/20 through 12/31/20.

    Here is an overview of the credit for 2021:

    In December 2020 the Consolidated Appropriations Act, and in March 2021 the American Rescue Plan Act were signed providing additional COVID-19 relief packages for businesses. Specifically, this new legislation amends, expands, and enhances the CARES Act Employee Retention Credit (ERC).

    The ERC was previously unavailable as an option for relief to businesses that received Paycheck Protection Program (PPP) loans through the SBA. However, the new legislation explicitly provides a retroactive amendment to March 13,2020, and clarifies these businesses are now eligible to receive the ERC—just not on wages paid with PPP loan funds.

    Other important changes to the ERC include:

    • Businesses that received PPP loans now eligible to receive ERC
    • Extension of ERC for the entire calendar year 2021
    • A prospective credit increase from 50% of up to $10,000 of qualified wages annually to 70% $10,000 of qualified wages per quarter starting January 1, 2021 through December 31,
    • 2021; and
    • Increases limit on per-employee creditable wages from $10K for the year to $10K for each quarter in ‘21
      • New max = $33,000 ($5K / 2020 + $7K / 1Q21 + $7K / 2Q21 + $7K / 3Q21 + $7K / 4Q21)
    • Increased benefits in 2021 for full wages for companies up to 500 employees
    • Public universities and hospitals are now considered eligible employers.

    The Employee Retention Credit can be claimed against the employer’s portion of employment taxes, including Social Security and Railroad Retirement. Should the credit exceed the amount due, it is treated as an over payment and is refundable.

    Synergi is prepared to guide you through this process. Reach out to us now to get started:

    Operational Impact
    Full Or Partially Suspended Operation
    Payroll Tax Credit
    Refundable
    HCM Unlocked

    Federal Hiring Incentives

    Work Opportunity Tax Credit (WOTC)

    The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive program that allows your business to receive up to $9,600 in tax credits per each eligible new hire.

    The partnership between HCM Unlocked and Synergi positions you for success, growth and profitability. We recognize your need for great talent and industry leading tax credit consulting and technology. We look forward to having you as part of our family. Please follow the instructions below to get started.

    The Work Opportunity Tax Credit is a federal hiring incentive that provides a tax credit worth up to $9,600 if your company is hiring from any one of the following groups:

    • A member of a family that is a Qualified Food Stamp Recipient
    • A member of a family that is a Qualified Aid to Families with Dependent Children (AFDC) Recipient
    • Qualified Veterans
    • Qualified Ex-Felons, Pardoned, Paroled or Work Release Individuals
    • Vocational Rehabilitation Referrals
    • Qualified Summer Youths
    • Qualified Supplemental Security Income (SSI) Recipients
    • Qualified Individuals living within an Empowerment Zone or Rural Renewal Community
    • Long Term Family Assistance Recipient (TANF) – formerly known as Welfare to Work
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    Tax credits off-set tax liability dollar for dollar. Some companies use credits in their tax planning to off-set quarterly estimated payments. Some companies use credits at the end of their tax year against annual tax liability. In the event of no tax liability, tax credits can be carried forward for up to twenty years. Consult with your tax professional for how to best use these incentives.

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    The life of a tax credit can be a year or more. The process begins with screening your new hires and ends with delivery of a certified and calculated tax credit. We manage this for you.

    Synergi beats the competition when it comes to screening, eligibility, forms compliance, certifications, and reporting

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    Built right into the platform, we screen eligibility and sign forms as you process hires.

      How To Get Started?

      Register Yourself

      Fill out the form and submit your contact information.

      Contact

      A Synergi Rep will contact you to discuss the next steps.

      Close

      Synergi will notify that you are ready to go. Sit back and start earning credits.

      Why Synergi Partners

      We focus solely on tax credit and disaster relief and capture the maximum credits for our clients.

      Questions? Contact Lee Edenfield (404) 663-1587 or

      Questions?

      Contact Lee Edenfield (404) 663-1587 or

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