The Employee Retention Credit (ERC) is a tax credit available to employers who have experienced economic hardship due to the COVID-19 pandemic.
The credit is intended to encourage employers to keep their employees on the payroll, even if the business is closed or operating at reduced capacity.
Here are some frequently asked questions about the ERC in New York:
Who is eligible for the ERC in New York?
To be eligible for the ERC in New York, an employer must have experienced a full or partial suspension of operations due to a government order related to COVID-19, or have experienced a significant decline in gross receipts.
How much is the ERC in New York?
The ERC in New York is equal to 50% of qualified wages paid to employees during the covered period, up to a maximum of $5,000 per employee. Qualified wages are defined as wages paid to an employee while the business was either fully or partially suspended due to a government order related to COVID-19, or during the period in which the employer experienced a significant decline in gross receipts.
How do I claim the ERC in New York?
To claim the ERC in New York, you will need to file Form 7200 with the IRS. This form can be filed electronically using the IRS’s online services, or by mailing a paper copy to the IRS.
When can I claim the ERC in New York?
The ERC is available for wages paid from March 13, 2020 through December 31, 2020. However, the credit is only available to employers who did not receive a Paycheck Protection Program (PPP) loan. If you received a PPP loan, you may still be eligible for the ERC if you have repaid the loan in full.
Can I claim the ERC in addition to the PPP loan forgiveness?
Yes, you can claim the ERC in addition to the PPP loan forgiveness, as long as you are eligible for both programs. However, you cannot claim the ERC for wages that have already been forgiven under the PPP.
Is the ERC available for self-employed individuals in New York?
Yes, self-employed individuals in New York are eligible for the ERC if they meet the same eligibility requirements as businesses. The ERC for self-employed individuals is equal to 50% of qualified wages, up to a maximum of $5,000.
The Employee Retention Credit is a valuable resource for businesses and self-employed individuals in New York who have been affected by the COVID-19 pandemic. If you think you may be eligible for the ERC, we recommend consulting with a tax professional to determine your eligibility and to ensure that you are claiming the credit correctly.
