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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

These incentives will expire!

Receive a complimentary analysis to determine the amount of tax credits your business may be eligible to receive. Simply fill out the form below.

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    The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020, to address the negative economic impact of the COVID-19 pandemic. Within the CARES Act, Congress created the Employee Retention Credit (“ERC”), a fully refundable payroll tax credit, to provide aid to employers impacted by the COVID-19 pandemic.   

    As originally passed, the ERC was available to eligible employers from March 13, 2020, to December 31, 2020, and was equal to 50% of up to $10,000 in qualified wages paid to an employee during the year—a credit opportunity of up to $5,000 per employee for the 2020 tax year. Subsequent legislation (the Consolidated Appropriations Act, the American Rescue Plan Act, and the Infrastructure Bill) was enacted to address the continued economic impact of the COVID-19 pandemic which included certain enhancements and amendments to the ERC. Among the enhancements were:  

    1. an extension of the ERC through September 30, 2021; and  
    2. an increase of the ERC to 70% of up to $10,000 in qualified wages paid to an employee per quarter—an increase in the credit opportunity to $7,000 per employee per quarter for the 2021 tax year.

    ERC Overview

    Eligibility for the ERC is evaluated on a quarterly basis and is based on each employer’s specific facts and circumstances. An employer is eligible for the ERC if it experienced either:  

    1. a full or partial suspension of business operations due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or  
    2. a significant decline in gross receipts (50% decline in gross receipts in 2020 compared to the same quarter in 2019; 20% decline in gross receipts in 2021 compared to the same quarter in 2019).   

    Subject to certain limitations, PPP recipients and certain instrumentalities of the government are generally permitted to claim the ERC if they meet one of the above eligibility tests.  

    Employers who are eligible for the ERC in a given quarter may qualify for 50% of up to $10,000 in qualified wages in 2020 per employee for the year, and 70% of up to $10,000 in qualified wages per employee, per quarter in 2021. The total potential ERC for an employer is $26,000 per employee.  

    The wages that may qualify for the ERC (the “Qualified Wages”) varies depending on an employer’s average full-time headcount in 2019.  A “small” employer’s Qualified Wages during an eligible quarter may include all wages paid and employer paid qualified health plan costs.  Qualified Wages for a “large” employer during an eligible quarter are wages paid not in exchange for a service and an allocable portion of employer paid qualified health plan costs.   

    A “small” employer is defined in 2020 as an average of 100 or less full-time employees in 2019, and an average of 500 or less full-time employees in 2019 for the 2021 credit.  A “large” employer is defined in 2020 as an employer with an average of more than 100 full-time employees during 2019, and an average of more than 500 full-time employees in 2019 for the 2021 credit.   

    Small Employers
    2020 <100
    2021 <500
    Large Employers
    2020 100+
    2021 500+

    The ERC can be monetized by completing an IRS Form 941-X and requesting a refund from the IRS. 

    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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