FAQS

A1: No. Not every business qualifies for the Employee Retention Credit. Eligibility depends on specific facts and circumstances. To be eligible, employers must have sustained a full or partial suspension of operations due to COVID-19-related government orders or experienced a significant decline in gross receipts during specific periods. Recovery startup businesses also qualify for certain quarters. Self-employed individuals with employees may be eligible based on qualified wages paid.

A2: Eligibility for the Employee Retention Credit is not universal. Some promoters may claim every employer qualifies, but this is not true. Specific eligibility requirements include a full or partial suspension of operations or a significant decline in gross receipts. Self-employed individuals with employees may qualify. Certain types of employers, such as individuals who are not business owners, employees, retirees, and household employers, do not qualify.

A3: Generally, qualified wages must be subject to Social Security and Medicare taxes. They may also include certain health care expenses paid for employees. Not all wages may be qualified, and dollar limits and rules vary by quarter. Factors affecting the calculation include the average number of employees in 2019, the provision of services during the suspension of operations or decline in gross receipts, and other tax credit claims or payroll program usage.

A4: To qualify for the ERC, your business or organization must have been subject to a qualifying government order related to COVID-19, causing a full or partial suspension of trade or business operations. Government orders can be at the local, state, or federal level. Examples include orders from mayors, state emergency proclamations, local official curfews, and health department mandates for workplace closures.

For more detailed information and personalized guidance on your eligibility and claiming the Employee Retention Credit, contact us at 4H Holdings LLC today. Your financial relief is our priority.