Understanding the Employee Retention Credit (ERC) and What to Do if You Are Accused of Fraud
The Employee Retention Credit (ERC) is a refundable tax credit available to eligible employers who kept employees on their payroll during the COVID-19 pandemic. This refundable tax credit was introduced to support businesses that retained their employees, even amidst the economic challenges posed by the pandemic. The credit is designed to help employers offset the cost of wages and health insurance premiums paid to qualified employees. Navigating complex financial programs can be challenging, and the ERC is no exception. Without a clear understanding of its intricacies, well-intentioned individuals might inadvertently commit fraud. Eligibility Criteria for the ERC For an employer to qualify for the ERC, they must satisfy at least one of the following conditions: They faced a complete or partial halt in their operations due to a government directive related to the pandemic in 2020 or during the first three quarters of 2021. They witnessed a substantial drop in gross receipts withi