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Senior homecare agencies – you qualify for the CARES Act Employee Retention Credit (ERC). The ERC allows businesses impacted by COVID-19 to receive a refundable, above the line Federal payroll tax credit. This credit can be utilized as a cash refund and is worth up to $26,000 per employee. This credit is available even if you did not have a revenue decline. Additionally, it is now available even if you took a PPP.

Your business was significantly impacted by COVID-19 and resulting government orders. Senior homecare agencies had to:

  • Order, supply and train caregivers around PPE and cleaning protocols
  • Change processes around client assessments and on-boarding new clients
  • Hire and staff shifts in new ways including virtual
  • Establish procedures to track and report COVID exposure

Synergi Partners has processed millions of dollars in credits for many agencies across the U.S. and we can help you maximize the ERC program.

  • ComForCare
  • Comfort Keepers
  • Home Instead
  • Right at Home
  • Visiting Angels

Time to Act is Now

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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.

    On Friday, November 5, 2021, the House passed a $1 trillion bipartisan Infrastructure Bill that contained a provision which eliminates the ERC in the fourth (4th) quarter of 2021.

    Synergi has closely monitored this proposed change to the ERC legislation and continues to work with congressional leaders to restore the availability of the ERC in the fourth (4th) quarter 2021 in the Budget Reconciliation Bill. Key House Representatives are also asking for the ERC be restored for the fourth (4th) quarter of 2021.  While the Budget Reconciliation Bill has yet to be approved by either the House or the Senate, we expect the Budget Reconciliation Bill to add back the fourth (4th) quarter 2021 and extend the ERC to also include first (1st) quarter 2022.

    Other important changes to the ERC include:

    • Businesses that received PPP loans now eligible to receive ERC
    • Extension of ERC for through Q3 of 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 September 30, 2021,
    • 2021; and
    • Increases limit on per-employee creditable wages from $10K for the year to $10K for each quarter in ‘21
      • $26,000 ($5K / 2020 + $7K / 1Q21 + $7K / 2Q21 + $7K / 3Q21)
    • 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.

    Lindsay and Pierce from Synergi Partners have been amazing through our process for CARES Act Employee Retention Tax Credits. We could not have done the calculation and eligibility statements without them!

    The Walker Group
    1

    We took the PPP and do not qualify.

    False. The new stimulus package recently signed into law allows businesses that received Paycheck Protection Program (PPP) loans to also receive the ERC. However, employers may only utilize the ERC towards wages that are not paid for with forgiven PPP proceeds.

    2

    We are an essential business and therefore we do not qualify.

    False. The CARES Act does not make an “essential” versus “non-essential” employer distinction regarding ERC qualification. An essential business can qualify for the ERC either because its operations are fully or partially suspended because of a governmental order, or because gross receipts declined by 20% year-over-year.

    3

    We were not shut down and stayed open the whole time and therefore do not qualify.

    False. If your business had to change operations in any way due to governmental orders OR if gross receipts declined by 20% year-over-year, your business qualifies. A change in operations means extra cleaning or sanitizing, installing/utilizing protective equipment, temperature checks, a change in job roles/functions, and more.

    4

    Our company’s year-over-year sales did not decline by 20%, therefore do not qualify.

    False. Your business needs to either experience a 20% decline in gross receipts OR suspension in operations, not both. Almost every business has been impacted in some way by a national, state, or local governmental order, therefore qualifying the business.

    5

    We are profitable and therefore do not qualify.

    False. We have helped many companies that were profitable in 2020 receive anywhere from thousands to millions of dollars in credits. This includes grocers, manufacturing, logistics companies, and more. If your business has been impacted in some way by the pandemic, you qualify.

    6

    We are a non-profit company, don’t pay taxes, and do not qualify.

    False. Unlike past employee retention credits, this credit also applies to tax-exempt organizations if the operation of the organization is fully or partially suspended due to governmental orders related to COVID-19. Many nonprofit schools, day care centers, counseling centers, ministries, churches, and clubs closed their buildings and/or partially suspended services to comply with government orders and guidelines. This cessation of services is a suspension of operations which would qualify that organization for the ERC.

    Example Credits

    Industries
    Avg: ’20 / ’21

    Senior Home Care

    Home Instead

    44 Full Time Employees
    168 Part Time Employees

    Since the company did not have a revenue decline, they thought they didn’t qualify for ERC. In fact, they did qualify.

    In the end their average credit per employee was $6,100

    $1.3M
    Potential Credits

    Senior Home Care

    Visiting Angels

    72 Full Time Employees
    234 Part Time Employees

    Thought they only qualified for the ERC during the times they were closed. In fact, they captured ERC for each full quarter.

    In the end, their average credit per employee was $7,100

    $2.1M
    Potential Credits

    Senior Home Care

    Right at Home

    38 Full Time Employees
    124 Part Time Employees

    Advised by CPA that because they took the PPP loan, they did not qualify for the ERC.

    In the end, their average credit per employee was $6,800

    $1.1M
    Potential Credits

    Questions? Contact Louise Asper (908) 328-4864 or

    Questions?

    Contact Louise Asper (908) 328-4864 or

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